Question: What is the difference between the market's bid - ask spread and the bid - ask spread that you are quoting into the market? The
What is the difference between the market's bidask spread and the bidask spread that you are quoting into the market?
The market's bidask spread represents the average price range across all stocks, while the quoted spread refers to your personal profit margin.
The market's bidask spreod reflects overall market conditions, while the quoted spread is specific to the prices you set for buying and selling shares.
The market's bidask spread is determined by regulators, whereas your quoted spread is based solely on your trading limits
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
