Spread
The difference between the highest price buyers will pay (the bid) and the lowest price sellers will accept (the ask). A narrower spread generally means lower trading cost.
The spread, visually
The spread is effectively a cost of trading: you buy at the higher ask and sell at the lower bid.
Related terms
Related lessons
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A complete map of every way a broker earns — commissions, spreads, payment for order flow, margin interest, interest on your cash, securities lending, FX and fees — and which revenue streams align with your interests and which work against them.
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The big picture of saving for retirement: why tax-advantaged retirement accounts exist, the three pillars (state, workplace and private pensions), why an employer match is free money to claim first, and the priority order for your contributions.
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