Trading

Bid-Ask Spread

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Difference between bid and ask prices

What is Bid-Ask Spread?

Bid-Ask Spread The difference between the bid and ask prices. Tighter spreads indicate more liquid options. Wide spreads increase trading costs.

Complete Definition

The difference between the bid and ask prices. Tighter spreads indicate more liquid options. Wide spreads increase trading costs.

Example

Bid: $2.50, Ask: $2.60. Spread = $0.10 or 4%. This is a reasonably tight spread.

AV
Written by
ApexVol Research Team
Quantitative options research
All calculations use live ORATS institutional data — the same source used by professional volatility desks.
RS
Technical reviewer
Ryan Silk, ApexVol Founder
Reviewed for technical accuracy
10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.
This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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