Bull's Catch Securities reposted this
Understanding the Bid-Ask Difference Definition: The Bid-Ask Difference (or Spread) is the gap between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). Liquidity Indicator: A smaller spread indicates high liquidity, while a larger spread signals low liquidity or market inefficiency. Cost of Trading: The spread represents an implicit cost for traders, as buying at the ask price and selling at the bid price results in an immediate loss equal to the spread. Market Dynamics: Factors like trading volume, volatility, and time of day significantly impact the bid-ask spread size. HFT and Arbitrage: High-Frequency Traders often profit from exploiting small spreads through rapid trades, highlighting the importance of spread management in algorithmic trading. #HFT #BullsCatchSecurities #Hiring Tarun Naagar Guru Pandey
