bid–ask spread is the difference between bid and offer in stock market in the case of a market maker.
bid–ask spread is the difference between bid and offer in stock market in the case of a market maker.
difference between bid and offer in stock market in the case of a market maker?
bid–ask spread
bid–ask spread









































the bid–ask spread (also bid–offer or bid/ask and buy/sell in the case of a market maker), is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale (offer) and an immediate purchase (bid) for stocks, futures contracts, options, or currency pairs. the size of the bid–ask spread in a security is one measure of the liquidity of the market and of the size of the transaction cost. if the spread is 0 then it is a frictionless asset.









































section::::liquidity.
bid–ask spread
the difference between the price at which a market maker is willing to buy a stock (the bid price) and the price that the firm is willing to sell it (the ask price) is known as the market maker spread, or bid–ask spread. supposing that equal amounts of buy and sell orders arrive and the price never changes, this is the amount that the market maker will gain on each round trip. market makers also provide liquidity to their own firm's clients, for which they earn a commission.









































section::::see also.









































bullet::::- sales and trading









































bullet::::- day trading
market maker