{"slug":"bid-ask-spread","term":"Bid-Ask Spread","category":"Market Structure","definition":"The bid-ask spread is the gap between the highest price buyers will pay (bid) and the lowest price sellers will accept (ask). It is the instant cost of trading with a market order and a live gauge of liquidity: tight spreads mean deep, active markets; wide spreads mean you pay just to enter.","street":"The spread is the house rake — you pay it the second you hit market buy, whether the trade works or not.","depth":["Spread is quoted in absolute terms or basis points. BTC-USDT on a top exchange runs around 1 basis point or less; a mid-cap alt might run 5–20 bps, and in a flash crash spreads can blow out 10x in seconds as market makers pull quotes. Crossing the spread costs roughly half of it versus mid on each side, so a full round trip pays the whole spread — before fees.","The misread that costs money: scalping strategies that backtest beautifully on candle closes die live because every entry and exit pays the spread. If your average trade targets 10 bps and the spread is 5, you've handed away half the edge before slippage and fees even show up. Check the spread at the hours you actually trade — it widens overnight and around news, exactly when you're tempted to chase."],"live":{"label":"Compare spreads across pairs →","href":"/markets/crypto"},"related":["order-book","slippage","maker-taker"]}