Bid-Ask Spread

Trading Basics

Bid-Ask Spread

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

Other Trading Basics

Backwardation

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

Read More »

Commercial Paper

How big companies finance short-term cash flow.

Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.

For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.

Read More »

Annual Report

The annual audited full year accounts of a particular company along with statements from the Chairman and Chief Executive.

Poured over by analysts for any gems.

Read More »

Start learning

Learn the skills needed to trade the markets on our Trading for Beginners course.

If you trade, we can save you time and money… See how here!

Request a Free Broker Consultation

Simply answer a few questions about your trading preferences and one of Forest Park FX’s expert brokerage advisers will get in touch to discuss your options.

Broker tool

Information you provide via this form will be shared with Forest Park FX only as per our Privacy Policy.