FTB-C000073 / Formula component

Bid-Ask Spread

The bid-ask spread is the difference between the ask price and bid price for a comparable quote state.

Also known asbid offer spreadquoted spread

Foundation 3 linked topicsPublished

Definitions

In plain terms

If the bid is 99.90 and the ask is 100.10, the quoted spread is 0.20 in the quote currency.

Technical

The absolute spread is ask minus bid after verifying matching instrument, source or consolidation scope, currency, timestamp policy, and quote validity.

Scope

A spread can be expressed in currency, ticks, basis points, or relative terms; this record defines the absolute form.

Examples

  • A governed dataset records bid-ask spread explicitly and preserves the source context needed to interpret it.

Common misconceptions

  • Bid-Ask Spread does not have one universal meaning or policy without its declared source, scope, and data contract.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. FIX Latest Online Specification — Market Data FIX Trading Community · official standard

    Supports: preferred label, short definition, technical definition

    Limits: Implementations use negotiated profiles; FIX fields do not impose one universal feed, stale-data, deduplication, or reconciliation policy.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
fintech-builder-owner-approved
Last reviewed
2026-07-26
Next review
2027-07-26
Record status
published