๐ฑ Bid-Ask Spread Calculator
The ask price should be equal to or greater than the bid price.
Enter a bid price and an ask price to calculate the spread's absolute value, its percentage of the ask price, and the midpoint (average of bid and ask). Useful as a rough gauge of trading cost in markets with a bid-ask spread, such as forex, stocks, or crypto.
How to use
- Enter the bid price.
- Enter the ask price.
- The spread's absolute value, percentage, and midpoint are calculated automatically.
FAQ
What are bid and ask?
The bid is the price buyers are offering to pay; the ask is the price sellers are asking for. The ask is normally higher than the bid, and the difference is the spread.
How is the spread calculated?
Spread (absolute) = ask โ bid. Spread (%) = (ask โ bid) รท ask ร 100. A smaller spread generally indicates a more liquid market with lower trading costs.
What is the midpoint?
The simple average of the bid and ask ((bid + ask) รท 2), sometimes used as a rough estimate of the "fair" market price at that moment.