spreads

In finance, a spread refers to the difference between two related prices or rates. For example, the bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is asking. Spreads can also measure the difference between yields on different bonds or interest rates, reflecting market conditions and risk. A narrower spread indicates a more liquid or stable market, while a wider spread suggests less liquidity or higher uncertainty. Understanding spreads helps investors assess transaction costs and market health.