RE: P. R. D1 May 2025 19:18
Jaybae - The share spread is the gap between the bid price (what buyers offer) and the ask price (what sellers request). It’s influenced by liquidity, supply and demand, trading volume, market makers, and regulations. Highly traded stocks (for example RollsRoyce) usually have smaller spreads, while low-volume stocks (for example Chariot) have wider spreads. Market makers help maintain reasonable spreads, and regulatory bodies monitor fairness. When demand rises, spreads shrink; when demand falls, spreads widen. Understanding spreads is key for effective trading decisions.