Govur University Logo
--> --> --> -->
...

In an order book, what does the 'spread' represent regarding the interaction between market makers and the liquidity provided to retail traders?



In an order book, the spread is the difference between the highest price a buyer is willing to pay, known as the bid price, and the lowest price a seller is willing to accept, known as the ask price. Market makers are professional participants who continuously quote both bid and ask prices for a security to provide liquidity, which is the ability to buy or sell an asset quickly ....

Log in to view the answer



Redundant Elements