Bid-offer spread: Difference between revisions
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imported>Doug Williamson (Link with Bid price and Offer price pages.) |
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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. | ||
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* [[Bid-offer price]] | * [[Bid-offer price]] | ||
* [[Bid price]] | * [[Bid price]] | ||
* [[Cross rates]] | |||
* [[Offer price]] | * [[Offer price]] | ||
* [[Open-ended investment company ]] | * [[Open-ended investment company ]] | ||
* [[Spread]] | * [[Spread]] | ||
* [[Spread to Treasury/ Governments]] | * [[Spread to Treasury / Governments]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 12:06, 4 January 2023
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.
