Spread

The difference between the bid and the ask price.

Detailed Definition

In finance, a spread is the difference between the bid and the ask price of a security or asset. It represents the primary cost of trading and the profit margin for the market maker or broker.

Related in General Trading

Day Trading

Buying and selling assets within the same trading day.

Dividend

A distribution of corporate profits to shareholders.

Going Short

Selling an asset with the expectation its price will fall.