Bid-Ask Spread and Slippage Explained — Kolin Lukas “B.A.”

Bid-ask spread is the difference between the lowest price asked for an asset and the highest price bid. Liquid assets like Bitcoin have a smaller spread than assets with less liquidity and trading volume.

Slippage occurs when a trade settles for an average price that is different than what was initially requested. It often happens when executing market orders. If…