Comparing Opportunity Bid-Ask Spread [Video]

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FAQs

What is a bid-ask spread and why is it important?

The bid/ask spread is the difference between the bid price and the ask price. The bid is the price someone is willing to pay, and the ask is the price someone is willing to offer. Spreads that are more narrow are indicative of good liquidity, and typically offer better pricing opportunities.

Can a bid-ask spread be an indication of liquidity?

Yes, itan indication of liquidity

How can I see the actual bid-ask spread reading when I start to run my bot?

To see the bid-ask spread in real-time you will need to monitor your brokerage platform.

Why is a tight bid-ask spread important to most traders?

Spreads that are more narrow are indicative of good liquidity, and typically offer better pricing opportunities.

Can this calculation be done on stock or is it for options only?

It can be used for both stocks and options.

Comparing Underlying Symbol Price

Comparing Underlying Symbol Properties

Evaluating Underlying Symbol OHLC

Evaluating Underlying Symbol Performance

Evaluating Underlying Symbol Standard Deviation

Comparing Underlying Symbol Price to an Indicator

Comparing Multiple Underlying Symbol Indicators

Evaluating Underlying Symbol Implied Volatility Rank

Evaluating Underlying Symbol Earnings Reporting

Evaluating Underlying Symbol Price Probability

Evaluating Underlying Symbol Probability Within Range

Evaluating Symbol Type

Evaluating Bot Properties

Evaluating Bot Available Capital for Opportunities

Comparing Bot Position Count to Position Type

Comparing Bot Position Count to Underlying Symbol

Evaluating Bot Position Count to Position Type and Underlying Symbol

Evaluating Bot Last Position Activity

Evaluating Bot Last Activity with Underlying Symbol

Evaluating Bot Position Activity History

Evaluating Bot Position Activity History with Underlying Symbol

Comparing Bot Active Orders Status

Comparing Bot Active Orders Status with Underlying Symbol

Evaluating Bot Position Availability

Evaluating Bot Tags

Evaluating Opportunity Availability

Evaluating Opportunity Return Expectations

Comparing Opportunity Attributes

Comparing Opportunity Leg Attributes

Evaluating Opportunity Probabilities

Evaluating Position Performance

Comparing Profit Target to Trailing Value

Comparing Position Time to Expiration

Comparing Position Duration

Evaluating Position Underlying Symbol

Comparing Position Properties

Comparing Position Leg Properties

Evaluating Position Type

Evaluating Position Side

Comparing Underlying Symbol Price to Position Leg

Evaluating Position Tags

Evaluating Underlying Symbol Indicator Properties

Comparing Multiple Underlying Symbol Indicator Properties

Evaluating MACD Technical Indicator

Comparing Bollinger Bands to Symbol Price

Evaluating Stochastic Technical Indicator

Comparing VIX Properties

Evaluating Market Time of the Day

Evaluating Days of the Week

Evaluating Bot Switches

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Kirk Du Plessis

Founder

Last updated:

Feb 13, 2023

Originally published:

Nov 29, 2021

Feb 14, 2023

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Bid-Ask Spread

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Comparing Opportunity Bid-Ask Spread