{"id":8733,"date":"2024-07-30T05:03:44","date_gmt":"2024-07-30T05:03:44","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=8733"},"modified":"2025-03-18T07:59:44","modified_gmt":"2025-03-18T07:59:44","slug":"bid-ask-spread","status":"publish","type":"trading","link":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/","title":{"rendered":"What is a Bid-Ask Spread?"},"content":{"rendered":"\n<p>The stock market in India has witnessed a record number of new investors in the past year. It\u2019s crucial to develop a solid understanding of the bid-ask spread.<\/p>\n\n\n\n<p>In this blog, we will explore the concept of bid-ask spread, the factors that influence it and its significance.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#What_is_Bid_and_Ask\" title=\"What is Bid and Ask?\">What is Bid and Ask?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#What_is_Bid-Ask_Spread\" title=\"What is Bid-Ask Spread?\">What is Bid-Ask Spread?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#Significance_of_Bid-Ask_Spread\" title=\"Significance of Bid-Ask Spread\">Significance of Bid-Ask Spread<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#Factors_that_Influence_BID-ASK_Spread\" title=\"Factors that Influence BID-ASK Spread\">Factors that Influence BID-ASK Spread<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#Frequently_Answered_Questions_FAQs\" title=\"Frequently Answered Questions (FAQs)\">Frequently Answered Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-bid-and-ask\"><span class=\"ez-toc-section\" id=\"What_is_Bid_and_Ask\"><\/span>What is Bid and Ask?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1.png\" alt=\"What is Bid and Ask?\" class=\"wp-image-8737\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:264px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Finance-pana-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Bid and ask can be defined as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bid Price: <\/strong>The bid price is the price a buyer is willing to pay for a security. It\u2019s the amount a seller can receive if they sell their security at that moment.<\/li>\n\n\n\n<li><strong>Ask Price:<\/strong> The asking price, also known as the offer price, is the price at which a seller is willing to sell a security. It\u2019s the amount a buyer must pay to buy the security.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-bid-ask-spread\"><span class=\"ez-toc-section\" id=\"What_is_Bid-Ask_Spread\"><\/span>What is Bid-Ask Spread?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. A narrow spread typically suggests a highly liquid market with low volatility, while wider spreads indicate lower liquidity with higher volatility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-calculation-of-bid-ask-spread\">Calculation of Bid-Ask Spread<\/h3>\n\n\n\n<p>The bid-ask spread can be calculated using the following formula:<\/p>\n\n\n\n<p><strong>Bid-Ask Spread = Lowest Ask Price &#8211; Highest Bid Price<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"725\" height=\"351\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Calculation-of-Bid-Ask-Spread.png\" alt=\"Calculation of Bid-Ask Spread\" class=\"wp-image-8735\" style=\"width:626px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Calculation-of-Bid-Ask-Spread.png 725w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Calculation-of-Bid-Ask-Spread-300x145.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Calculation-of-Bid-Ask-Spread-150x73.png 150w\" sizes=\"auto, (max-width: 725px) 100vw, 725px\" \/><\/figure>\n\n\n\n<p><strong>Example: <\/strong>Suppose a stock is trading with low liquidity and is currently trading at INR 107. A trader wishes to purchase a stock and sees the following information:<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Number of Buyers<\/th><th class=\"has-text-align-center\" data-align=\"center\">Bid Prices<\/th><th class=\"has-text-align-center\" data-align=\"center\">Ask Prices<\/th><th class=\"has-text-align-center\" data-align=\"center\">Number of Sellers<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">7,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">105<\/td><td class=\"has-text-align-center\" data-align=\"center\">110<\/td><td class=\"has-text-align-center\" data-align=\"center\">8,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">104<\/td><td class=\"has-text-align-center\" data-align=\"center\">112<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">102<\/td><td class=\"has-text-align-center\" data-align=\"center\">114<\/td><td class=\"has-text-align-center\" data-align=\"center\">4,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">101<\/td><td class=\"has-text-align-center\" data-align=\"center\">115<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Lowest Ask Price = INR 110<\/p>\n\n\n\n<p>Highest Bid Price = INR 105<\/p>\n\n\n\n<p>In order to purchase the stock immediately, the trader must pay the ask price, which is the price a seller is willing to accept to sell the security. Bid-Ask spread, in this case, is INR 5. Now, let\u2019s see what narrow and wide bid-ask spreads signify.<\/p>\n\n\n\n<h4 class=\"wp-block-heading has-medium-font-size\" id=\"h-narrow-bid-ask-spread\">Narrow Bid-Ask Spread<\/h4>\n\n\n\n<p>In a narrow bid-ask spread, the gap be\u00adtween bid and ask prices is tiny. It\u2019s ge\u00adnerally a sign of high liquidity, a condition where lots of pote\u00adntial buyers and sellers are\u00ad present. This makes trading the\u00ad stock simpler and doesn\u2019t drastically swing its price.<\/p>\n\n\n\n<h4 class=\"wp-block-heading has-medium-font-size\" id=\"h-wide-bid-ask-spread\">Wide Bid-Ask Spread<\/h4>\n\n\n\n<p>In a wide bid-ask spread, the bid and ask price\u00ads are far apart. That\u2019s a sign of low liquidity. Selling or buying a stock can be a tough task without causing a lot of change in the\u00ad price. The execution cost per share increases, and you may have to pay more for purchasing a share or accept a lower price when selling a share.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-significance-of-bid-ask-spread\"><span class=\"ez-toc-section\" id=\"Significance_of_Bid-Ask_Spread\"><\/span>Significance of Bid-Ask Spread<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The bid-ask spread can be used in the following ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Liquidity Indicator:<\/strong> A narrow bid-ask spread indicates high liquidity, while a wide bid-ask spread indicates lower liquidity.<\/li>\n\n\n\n<li><strong>Transaction costs:<\/strong> A wide bid-ask spread indicates that the transaction costs would be higher. On the other hand, a narrow bid-ask spread indicates lower transaction costs.<\/li>\n\n\n\n<li><strong>Volatility Indicator:<\/strong> A wide bid-ask spread means the participants in the market are cautious of high volatility. Meanwhile, markets with a narrow bid-ask spread indicate low volatility.<\/li>\n\n\n\n<li><strong>Market efficiency:<\/strong> In efficient markets, the market information flows freely, and due to the low probability of volatile movements, the bid-ask spreads are generally narrow. On the other hand, inefficient markets often have a wide bid-ask spread.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-factors-that-influence-bid-ask-spread\"><span class=\"ez-toc-section\" id=\"Factors_that_Influence_BID-ASK_Spread\"><\/span>Factors that Influence BID-ASK Spread<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1.png\" alt=\"Factors that Influence BID-ASK Spread\" class=\"wp-image-8739\" style=\"width:239px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Marketing-consulting-amico-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Various factors that affect the bid-ask spread are given below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Liquidity: <\/strong>Highly liquid stocks, such as those of large, well-known companies, generally have narrower spreads because there are many buyers and sellers. Whereas less liquid stocks often have wider spreads due to fewer market participants.<\/li>\n\n\n\n<li><strong>Market Conditions: <\/strong>During periods of high volatility or market uncertainty, spreads can widen as market participants become less willing to transact at the current prices.<\/li>\n\n\n\n<li><strong>Stock Price:<\/strong> Higher-priced stocks have larger absolute spreads, although the percentage spread may remain small. Lower-priced stocks can have relatively smaller absolute spreads.<\/li>\n\n\n\n<li><strong>Trading Volume: <\/strong>Stocks with higher trading volumes have narrower spreads due to the high competition among buyers and sellers.<\/li>\n\n\n\n<li><strong>Time of Day: <\/strong>Usually, spreads are wider at the market open and close due to increased volatility and lower liquidity during these times.<\/li>\n<\/ul>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/spread-trading\/\">What is Spread Trading?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The gap be\u00adtween bid and ask is key to trade\u00ad execution. A trader should trade in markets with a narrow bid-ask spread as a wider bid-ask spread increases the transaction costs and, thus, reduces the profit of the trader. However, it is advised to consult a financial advisor before making any investment decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-answered-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Answered_Questions_FAQs\"><\/span>Frequently Answered Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">How does the bid-ask spread affect day traders differently from long-term investors?<\/h3><p class=\"saswp-faq-answer-text\">Day traders often experience higher costs due to frequent trading, as the bid-ask spread can accumulate quickly. Long-term investors are less affected because they trade less frequently.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is it possible for the bid-ask spread to be zero?<\/h3><p class=\"saswp-faq-answer-text\">While rare, a zero spread occurs in extremely liquid markets or during certain market-making activities where bid and ask prices converge.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How do electronic trading platforms impact the bid-ask spread?<\/h3><p class=\"saswp-faq-answer-text\">Electronic trading platforms reduce the spread by increasing market efficiency and the number of market participants.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How can retail investors leverage bid-ask spreads to identify trading opportunities?<\/h3><p class=\"saswp-faq-answer-text\">Retail investors can use the spread to gauge market liquidity and execute trades when spreads are narrower to reduce costs.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How does high-frequency trading (HFT) influence the bid-ask spread?<\/h3><p class=\"saswp-faq-answer-text\">HFT can narrow spreads by providing liquidity and increasing trading volume.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>The stock market in India has witnessed a record number of new investors in the past year. It\u2019s crucial to develop a solid understanding of the bid-ask spread. In this blog, we will explore the concept of bid-ask spread, the factors that influence it and its significance.&nbsp; What is Bid and Ask? Bid and ask [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":8751,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16],"class_list":["post-8733","trading","type-trading","status-publish","format-standard","has-post-thumbnail","hentry","category-trading"],"acf":{"freelancer":"Nisha Kochar"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bid-Ask Spread: Meaning, Calculation and Factors - Pocketful<\/title>\n<meta name=\"description\" content=\"The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. Get complete info on Bid-Ask Spread at Pocketful.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Bid-Ask Spread?\" \/>\n<meta property=\"og:description\" content=\"The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. Get complete info on Bid-Ask Spread at Pocketful.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/\" \/>\n<meta property=\"og:site_name\" content=\"Pocketful\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Pocketful.HQ\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-18T07:59:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/wp-api.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/bid-ask-spread.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1497\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@Pocketful_HQ\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Bid-Ask Spread: Meaning, Calculation and Factors - Pocketful","description":"The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. Get complete info on Bid-Ask Spread at Pocketful.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"What is a Bid-Ask Spread?","og_description":"The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. Get complete info on Bid-Ask Spread at Pocketful.","og_url":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/","og_site_name":"Pocketful","article_publisher":"https:\/\/www.facebook.com\/Pocketful.HQ\/","article_modified_time":"2025-03-18T07:59:44+00:00","og_image":[{"width":1497,"height":1080,"url":"https:\/\/wp-api.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/bid-ask-spread.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@Pocketful_HQ","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/","url":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/","name":"Bid-Ask Spread: Meaning, Calculation and Factors - Pocketful","isPartOf":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#website"},"datePublished":"2024-07-30T05:03:44+00:00","dateModified":"2025-03-18T07:59:44+00:00","description":"The difference between the bid and ask prices is known as the \u201cBid-Ask Spread.\u201d This spread indicates the liquidity and volatility of security. Get complete info on Bid-Ask Spread at Pocketful.","breadcrumb":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/bid-ask-spread\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog Home","item":"https:\/\/wp-api.pocketful.in\/blog\/"},{"@type":"ListItem","position":2,"name":"What is a Bid-Ask Spread?"}]},{"@type":"WebSite","@id":"https:\/\/wp-api.pocketful.in\/blog\/#website","url":"https:\/\/wp-api.pocketful.in\/blog\/","name":"Pocketful blog","description":"Learn Stock market trading, investing &amp; more","publisher":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/wp-api.pocketful.in\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/wp-api.pocketful.in\/blog\/#organization","name":"Pocketful","alternateName":"Pocketful Broker","url":"https:\/\/wp-api.pocketful.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/wp-api.pocketful.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/08\/Logo_Final-01-1-3-1.png","contentUrl":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/08\/Logo_Final-01-1-3-1.png","width":150,"height":26,"caption":"Pocketful"},"image":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Pocketful.HQ\/","https:\/\/twitter.com\/Pocketful_HQ","https:\/\/www.linkedin.com\/company\/pocketfulofprofits\/","https:\/\/www.instagram.com\/pocketful.official\/"]}]}},"article_history_entries":[{"type":"Edit","author":{"id":7,"name":"Pocketful Team","url":"pocketful"},"content":"Post created","date":"2024-07-30 05:03:44","id":"ah_6717982ab9fc88.86687093"},{"type":"Update","author":{"id":11,"name":"Nisha","url":"nisha"},"content":"Add new links","date":"2025-03-18 07:59:45","id":"ah_67d927f17f26e2.87189803"}],"image_url_featured":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/bid-ask-spread.jpg","_links":{"self":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading\/8733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading"}],"about":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/types\/trading"}],"author":[{"embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":0,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading\/8733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/media\/8751"}],"wp:attachment":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/media?parent=8733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/categories?post=8733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}