Big news!
Get a FREE Pro+ upgrade by connecting a qualifying Tradier Brokerage account! Learn more.

Comparing Opportunity Bid-Ask Spread

The 'Opportunity bid-ask spread is less than $0.20' evaluates the bid/ask spread of an opportunity.


FAQs

What is a bid-ask spread and why is it important?

The bid/ask spread is the difference between the bid price and the ask price. The bid is the price someone is willing to pay, and the ask is the price someone is willing to offer. Spreads that are more narrow are indicative of good liquidity, and typically offer better pricing opportunities.

Can a bid-ask spread be an indication of liquidity?

Yes, itan indication of liquidity

How can I see the actual bid-ask spread reading when I start to run my bot?

To see the bid-ask spread in real-time you will need to monitor your brokerage platform.

Why is a tight bid-ask spread important to most traders?

Spreads that are more narrow are indicative of good liquidity, and typically offer better pricing opportunities.

Can this calculation be done on stock or is it for options only?

It can be used for both stocks and options.

Related articles

Was this helpful?

Please share feedback with our team.
Author
Kirk Du Plessis
Founder
No items found.

Find new trade ideas

Option Alpha calculates probabilities for millions of potential options positions using live market data so you can find new ideas without the guesswork.
MacBook mockup