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If you look on any exchange or broker for any security, the sell price at any given time will almost always be lower than the buy price. The instantaneous gap
by frutiger 8y ago
If you look on any exchange or broker for any security, the sell price at any given time will almost always be lower than the buy price. The instantaneous gap between the sell price and the buy price is known as the spread.
This spread reflects how much the exchange makes.
- vostok 8y agoIt's a very indirect relationship to how much the exchange makes.
- optionsguy 8y agoMarket makers profit off the bid/ask, not exchanges.
- adrr 8y agoThey also get rebates for trades from the exchanges to encourage liquidity.