Bid-Ask Spread

The bid-ask spread is the gap between what buyers are willing to pay and what sellers are willing to accept. That gap is part of the real cost of trading.

Why it matters

A tight spread usually means cleaner execution. A wide spread can make a trade worse before price even moves.

What beginners miss

Many beginners look at the chart and ignore the spread. That is how a good idea turns into a mediocre fill.

Practical takeaway

Check the spread before you enter, especially in options and thin names. If the spread is wide, you are paying extra just to get in the door.