meaning of Bid Offer Spread

Bid Offer Spread meaning in Finance Dictionary

The difference between the value therefore the cost for assets.When you ask a broker exactly what price the stocks of a business tend to be exchanging at in the market, he'll quote two rates: the bid pricing is the price of which you'll offer your shares, plus the offer price is the purchase price at which you can purchase them. The very first is always lower than the 2nd, together with difference between all of them may be the spread.Market manufacturers, which become wholesalers within the currency markets, make their profit from the spread - buying shares in the bid cost and attempting to sell them on offer price