Bid–ask spread
The gap between the best price a buyer is bidding and the best a seller is asking.
How to read it
A cost paid on every round trip. Wide spreads mean thin liquidity; they widen everywhere when markets are stressed.
How to use it
The cost of trading in and out; wide spreads penalize the opportunity score.
Limitations
An estimated spread is 18% of the median one-minute bar range of the last 15 bars, marked as estimated.
In Kereon
Market. The median across the desk's symbols, in basis points of the price (1 bp = 0.01%). A quote that carries no bid and ask has its spread estimated.
Also called: median spread, bid-ask spread, bid–ask spread.