Bid-offer spread: Difference between revisions
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The difference between the prices at which market makers (such as banks and other | The difference between the prices at which market makers (such as banks and other 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. | The term also applies to the difference between the borrowing rate and the deposit rate, quoted for a particular maturity of funds. | ||
Revision as of 10:12, 11 May 2016
The difference between the prices at which market makers (such as banks and other 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.
