Bid/Ask Spread for Non-Traders
The spread is not noise; it is a key part of execution quality. This guide explains it without trading jargon.
Use it to compare offers more fairly.
Spread basics
Bid is what the market pays, ask is what the market charges. The gap is execution friction and risk pricing.
Why spreads change
Market liquidity, volatility, timing, and provider behavior can widen or tighten spreads.
How buyers should react
Treat spread as part of total cost and compare consistently across equivalent products and purity.