Bid-Ask Spread

technical

The bid-ask spread is the difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Tighter spreads indicate higher liquidity and lower trading costs. Popular ETFs like VOO and SPY typically have spreads of just one cent.

Related Terms

Exchange-Traded Fund (ETF) Liquidity Trading Volume

See this concept in action → ETF Comparison