Markets & trading2 min read
Bid–ask spreadGerman: Spread
The bid–ask spread is the gap between the highest buying offer and the lowest selling offer for a security.
In plain language
You generally buy at the ask and sell at the bid. The spread is therefore a trading cost in addition to explicit fees. Trading hours, liquidity and market stress can change it.
Let’s make it concrete
The bid is €99.90 and the ask is €100.10. The spread is €0.20, about 0.2% of the midpoint price.
Simplified example for illustration.Worth understanding
Commission-free trading is not necessarily cost-free: the spread can still make execution more expensive.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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