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Wednesday, 02/14/2018 7:51:37 AM

Wednesday, February 14, 2018 7:51:37 AM

Post# of 821321
Compensated Awareness Post View Disclaimer
“The Spread” is a term that applies to all markets and represents the difference between the highest bid price and the lowest ask price. For example if “the bid” is $10.00 and “the ask” is $11.00, then the spread is $1.00. The spread is one of the ways that broker-dealers, specifically market makers (a type of broker-dealer that provides liquidity by quoting and trading both sides of the market), make money.
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