Bid-ask spread
Also written spread (quote).
Definition
The gap between the highest price a buyer is bidding and the lowest price a seller is asking. A thinly traded preferred can carry a spread of several cents, a cost paid on the way in and again on the way out. Limit orders keep it in view.
Definitions describe how YieldDesk reads the term. Nothing on this page is investment advice or a recommendation to buy, sell or hold.