Financial Tool

Bid-Ask Spread Calculator

Calculate the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

Σ The Formula

Spread = Ask - Bid

Real World Examples

Liquid Stock
Bid: 150.10, Ask: 150.11 → 0.006% Spread
Illiquid Asset
Bid: 10.00, Ask: 11.00 → 9.09% Spread

# About This Calculator

The Bid-Ask Spread is essentially a transaction cost. The **Bid** is the highest price a buyer will pay to buy the asset, and the **Ask** is the lowest price at which a seller will sell.

In highly liquid markets like major tech stocks or Forex, the spread is often just pennies. In less active markets (like penny stocks or real estate), the spread can be very wide, meaning you instantly lose value the moment you buy.

How To Use

  1. Enter the **Bid Price** (the price you see for selling).
  2. Enter the **Ask Price** (the price you see for buying).
  3. The calculator will show the absolute dollar difference and the percentage cost of the trade.

Frequently Asked Questions

Who pockets the spread?+

In many cases, the spread goes to market makers or liquidity providers who facilitate the trade by being willing to buy or sell at any time.

Why is a narrow spread better?+

A narrow spread indicates high liquidity and lower 'friction' costs for investors. It means you can enter and exit positions without losing a large percentage of your investment to the spread.

Is Bid-Ask Spread Calculator free to use?+

Yes, Bid-Ask Spread Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is Bid-Ask Spread Calculator?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for Bid-Ask Spread Calculator are accurate for academic and professional use.

Can I use Bid-Ask Spread Calculator on my phone?+

Yes! Bid-Ask Spread Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

About

The Bid-Ask Spread is essentially a transaction cost. The **Bid** is the highest price a buyer will pay to buy the asset, and the **Ask** is the lowest price at which a seller will sell.

In highly liquid markets like major tech stocks or Forex, the spread is often just pennies. In less active markets (like penny stocks or real estate), the spread can be very wide, meaning you instantly lose value the moment you buy.

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