Bid-offer spread: Difference between revisions
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imported>Doug Williamson (Expand to mention cost of spreads for customers.) |
imported>Doug Williamson (Link with Bid price and Offer price pages.) |
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== See also == | == See also == | ||
* [[Bid-offer price]] | * [[Bid-offer price]] | ||
* [[Bid price]] | |||
* [[Offer price]] | |||
* [[Cross rates]] | * [[Cross rates]] | ||
* [[Open-ended investment company ]] | * [[Open-ended investment company ]] | ||
Revision as of 15:33, 17 November 2015
The difference between the prices at which market makers (such as banks and other foreign currency dealers) are willing to buy and sell currencies or other traded assets.
The term also applies to the difference between the borrowing rate and the deposit rate quoted for a particular maturity of funds.
In simple terms, bid-offer spreads represent profits for market makers, and costs for their customers.
