Bid-ask spread

The gap between the highest buy price and the lowest sell price.

Search

What is the bid-ask spread?

The bid-ask spread is the gap between the highest price buyers will pay and the lowest price sellers will accept. It is a quick gauge of how easily an asset can be traded.

Why it matters

A narrow spread usually points to a liquid, active market, while a wide spread often means fewer participants and can make trading more expensive.

Related terms

The prices buyers offer and sellers accept for an asset.

Profiting from price differences for the same asset across markets.

A set of rules that lets software applications share data and interact, often used to connect trading tools to an exchange.

Start investing today

Your Luno app makes investing straightforward, with a clear and intuitive app experience we know you’ll love. 

Start investing today

Your Luno app makes investing straightforward, with a clear and intuitive app experience we know you’ll love.