Bid-Ask Spread

February 1, 2026 · 1 min read

Bid-Ask Spread is a finance/economics concept used to analyze decisions, risk, or performance. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: You might use Bid-Ask Spread to compare alternatives and choose a plan.

Related terms: Stress Test, Lagging Indicator, Beta.