Bid-Ask Spread

The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.

A high bid-ask spread usually implies the security has a low liquidity.

Example, if the bid price is $30 and the ask price is $31 then the “bid-ask spread” is $1.