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Erstellt: 19.06.23, 13:21 Betreff: Re: The Importance of Bid-Ask Spread in Trading
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The bid-ask spread refers to the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a financial instrument. It represents the transaction cost and liquidity in the market. Understanding the concept of bid-ask spread is vital for traders as it directly affects their profitability and trade execution. A narrower spread indicates higher liquidity and lower trading costs, while a wider spread can lead to increased expenses. To gain a deeper understanding of bid-ask spread and its significance, I recommend visiting the FBS broker website. Their guidebook provides comprehensive insights, real-life examples, and practical tips for traders to effectively navigate the bid-ask spread in financial markets.
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