YatırımMasasıYatırım Masası homeFundamental analysisTurkish: Spread
What is Spread?
The difference between the bid and ask prices; an indicator of the cost of liquidity.
ExampleThe spread is TRY 0.01 on liquid stocks but can widen to TRY 1 on illiquid ones.The figures in the example illustrate the concept; they are not current market data.
Related terms
LiquidityHow easily an asset can be turned into cash quickly without significantly moving its market price.ArbitrageA strategy that aims to earn a risk-free profit from the price difference of the same asset in differentHigh-Frequency Trading (HFT)An automated trading strategy in which algorithmic systems execute thousands of trades in fractions of aSharpe RatioA ratio that measures an investment's excess return per unit of risk.
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Frequently asked questions
What is Spread?
The difference between the bid and ask prices; an indicator of the cost of liquidity.
What is Spread called in Turkish?
In Turkish financial reporting and news, Spread is called Spread.
Which concepts are related to Spread?
The concepts most often mentioned together with Spread are Liquidity and Arbitrage.
More terms in Fundamental analysis
Active ManagementAlpha (α)Asset AllocationBalance SheetBear MarketBeta (β)BondBull MarketCapital Expenditure (Capex)Cash FlowCorrelationDilutionDiscount RateDiscounted Cash FlowDiversificationDividendDividend YieldEarnings Per ShareEarnings ReleaseEarnings SurpriseEnterprise Value (EV)EquityEV/EBITDAFair ValueGross Profit MarginGrowth StockIncome StatementInsider TradingInternal Rate of ReturnInvestment InstrumentsLeverageMargin CallMarket CapitalizationNet Profit MarginOpen PositionP/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)PortfolioReturn on AssetsReturn on EquityShort PositionStop-LossStop-Loss OrderValue StockVolatilityWeighted Average CostWeighted Average Cost of Capital