Bid-Ask Spread

The bid-ask spread is the gap between the highest price a buyer is currently willing to pay (the bid) and the lowest price a seller will accept (the ask, or offer). It is quoted in absolute terms or as a percentage of the mid price, and it represents an immediate cost: buy at the ask and sell at the bid, and you start slightly behind. Deep, actively traded pairs such as major coins against a stablecoin usually show tight spreads, while small-cap tokens, illiquid venues and volatile moments show wide ones. Market makers earn the spread for providing continuous two-sided quotes, and it typically widens when uncertainty rises.