Markets
The spread (bid-ask spread) is the difference between the buy price (ask) and the sell price (bid) of a security, and it acts as an indirect trading cost.
The spread (bid-ask spread) is the difference between the highest buy offer (bid) and the lowest sell offer (ask) for a security. It counts as an indirect trading cost.
Large, liquid securities (for example DAX shares or popular ETFs) have very tight spreads of just a few cents. Small, illiquid securities can show markedly wider spreads.
A practical note: where possible, trade during the main trading hours (9:00–17:30 CET), when spreads are tightest. Limit orders offer additional protection against unfavourable execution prices.
Related terms
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