All you need to know about bid-ask spreads and its importance while trading

The bid-ask spread is the extent to which the Best Sell Price (ask price) exceeds the Best Buy Price (bid price).

When you trade stocks the price / volume screen will show you the bid price and the ask price. The bid price shows the best price at which the other party is willing to buy the stock. That will be the best price at which the trader on the screen can sell the stock. The ask price shows the best price at which the other party will sell the stock. It is the best price at which the trader on the screen can buy the stock. The extent to which the ask price on the screen is greater than the