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Bid-Ask Spread

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Description

The difference between the highest price that a buyer is willing to pay for an asset (bid) and the lowest price a seller is willing to accept (ask).

The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller will accept (ask). This spread is crucial for traders as it affects transaction costs; a narrower spread means lower costs and vice versa, impacting trading strategy and profitability.

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