Before we light up candles 🕯️🕯️🕯️ and manifest for this price to tank even further, let's quickly discuss the difference between the two prices - Selling At (BID) & Buying At (ASK)

Smallanyana Friday 🧵

Ever wondered why the prices differ? ETFRHO is usually the biggest culprit here - the difference is pretty ridiculous 😩😭

Well, there's something called the SPREAD

A spread is referred to as the difference between the price at which a provider (e.g. broker) is willing to buy an asset (e.g. stock) and the price at which the seller is willing to sell it....

Many brokers quote their prices in the form of a spread, meaning the price to buy will always be slightly higher than the underlying market, while the price to sell will always be slightly below it.

Mmh, but why? You may ask

The spread is a key indicator of the liquidity of the asset.
In general, the smaller the spread, the better the liquidity..