Bid/Ask Spread

Bid/Ask Spread - The bid/ask spread is in general the difference between any two prices; therefore, the difference between a current ask and a current bid, in over-the-counter trading of a given security is also called the bid/ask spread. In exchange trading, the difference between the current bid and the current offer is exactly the same thing, although occurring in a different segment of the market. The bid/ask spread is part of the mutual funds, bonds, futures, and stocks options and are generally active securities, but not always. Recently, single small investors have become concerned about the bid/ask spread and have pulled their securities.