📊 MARKET STRUCTURE: BID-ASK SPREAD
The bid-ask spread is the difference between the highest price buyers are offering and the lowest price sellers are accepting.
• 🟢 Tight spread → generally deeper liquidity
• 🔴 Wide spread → potentially thinner liquidity
• ⚡ Volatility can widen spreads
• 📦 Large orders can face greater execution impact
• 🧭 Compare spread with order-book depth before trading
Key takeaway: A liquid-looking market can still have poor execution if available depth is limited.
October 7, 2026 71 1
