Robinhood Learn
For every stock or options contract, there is an ask price, which is the lowest price a seller is asking for, and a bid price, or the highest price a buyer is currently willing to pay. The difference between the bid and ask price is called the bid/ask spread.
What is a bid/ask spread?
For every stock or options contract, there is an ask price, which is the lowest price a seller is asking for, and a bid price, or the highest price a buyer is currently willing to pay. The difference between the bid and ask price is called the bid/ask spread.