TRADING
Bid-Ask Spread
The difference between executable or quoted bid and ask/offer levels.
Market use
Often used as one indicator of transaction-cost and liquidity conditions.
What it means
The difference between executable or quoted bid and ask/offer levels.
Example
A price bid of 99.90 and ask of 100.00 gives a 0.10 price-point spread.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.