Bid, ask, spread, and last price
What investors actually see and pay when they trade.
Bid, ask, spread, and last price
| Concept | Explanation | |---|---| | Bid | Highest current price a buyer is willing to pay. | | Ask | Lowest current price a seller is willing to accept. | | Spread | Difference between best bid and best ask. | | Last price | Price of the most recently completed trade. | | Midpoint | Average of the best bid and ask; it is not necessarily executable. |
A narrow spread usually indicates better liquidity and lower immediate transaction cost. A wide spread may reflect low activity, uncertainty, or market stress.