2007-06-09 01:18:42 · 2 answers · asked by vkak_hyd 1 in Business & Finance ➔ Insurance
the difference between the best offer to sell and the best offer to buy. Shares with relatively high volumes usually have the smallest [percentage] spread and those with low volumes the larger spreads.
Fairly obviously, to make money trading in shares, the price has to move in your direction by at least the spread, plus commissions, plus slippage. ["Slippage" is the difference between the price you think you're going to get and what the price actually is when your order executes. For practical purposes, slippage can be thought of as some multiple of the spread and experience will teach you how large it is.]
Together these can be thought of as a 'fixed' cost of being in the business of trading.
GL
2007-06-09 01:34:27 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
the difference between buy price and selling price
In any market their selling price is always higher than the buying price. It is also called bid / offerer spread.
2007-06-09 15:34:21 · answer #2 · answered by Insurance 3 · 0⤊ 0⤋