GlossaryOrders
Bid-Ask Spread
A definition of the bid-ask spread and why it is part of real execution cost.
Plain-English definition
The bid-ask spread is the difference between the best price buyers are offering and the best price sellers are asking.
Why it matters
Wide spreads increase friction and can make entry and exit more expensive.
Beginner example
An ETF with a one-cent spread is trading differently from a small-cap stock with a much wider spread.
Common misunderstanding
A low last-traded price difference does not erase spread cost.
In productOrder basics lessonsLiquidity discussions
Practice with Alpha Council
What does bid-ask spread tell me about an asset?
Not Financial Advice
This learn page is for education and research workflow guidance only. It explains concepts, metrics, and analysis steps used inside Alpha Council. It does not provide personalized investment advice, guaranteed outcomes, or automated trading instructions.