Trading & Technical Analysis

What is the bid-ask spread?

The bid-ask spread is the gap between the highest price a buyer is willing to pay, the bid, and the lowest price a seller will accept, the ask. It represents the cost of trading immediately and reflects how liquid a market is. For example, if a token shows a bid of 100 and an ask of 100.2, the spread is 0.2, which a buyer effectively pays to transact now. A narrow spread usually signals a deep, active market, while a wide spread points to thinner liquidity and a higher cost to enter or exit.