Bid-Ask Spread

The bid-ask spread is the gap between the highest bid price and the lowest ask price on an order book.

What Is Bid-Ask Spread?

The bid-ask spread is the gap between the highest bid price and the lowest ask price on an order book.

Tight spreads usually mean healthier liquidity; wide spreads raise trading costs.

Why Bid-Ask Spread Matters

  • Why traders care: Immediate cost of crossing the market.
  • Playbook fit: Best with structure, volume, and risk rules.
  • Alert fit: Clear levels or thresholds become Phalerta notifications.

How Traders Use Bid-Ask Spread

Compare spreads across venues and hours. Avoid market orders when spreads suddenly widen.

Example: Bid-Ask Spread in Practice

A trader sees the spread widen into news and waits for a Phalerta alert after liquidity returns.

Pro Tip

Let alerts pull you back when markets normalize.

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Never Miss a Market Move Again

Turn Bid-Ask Spread context into action. Set custom crypto alerts in Phalerta and get real-time notifications on Telegram, Discord, Email, or the app.

Frequently asked questions

What is Bid-Ask Spread?

The bid-ask spread is the gap between the highest bid price and the lowest ask price on an order book.

Is a wider spread always bad?

It raises costs and can warn of fragile liquidity.

Can Phalerta help?

Yes — set price or indicator alerts and get notified on Telegram, Discord, Email, or the app.

Precision Alerts, Confident Trading.