4 ms·

>as all potential transactions with a 0-or-higher bid-ask spread will occur, bid-ask spread isn't a property of transactions, it's a property of markets. Trans

>as all potential transactions with a 0-or-higher bid-ask spread will occur, bid-ask spread isn't a property of transactions, it's a property of markets. Transactions will occur when someone is willing to pay at least as much as a supplier is charging. The bid-ask spread is how much less the highest bidder is willing to pay than the lowest seller is asking. It's a measure of how far apart buyers and sellers are from making a transaction, at a moment of time in a market.

dragonwriter 5y ago
> bid-ask spread isn't a property of transactions, it's a property of markets The upthread poste by dragontamer which introduced it seemed to ascribe it specifically to particular transactions, and I responded to what waa described in that post, viewing terminological minutiae as less interesting than the concept being discussed for which there seemed adequate clarity in context.
- CrazyStat 5y ago
  Well yeah, that's why I felt like they were conflating two different topics. The bid-ask spread on a stock exchange doesn't really the same as my be willing to pay $350k for your house when you would be willing to go as low as $300k.
  - dragonwriter 5y ago
    > The bid-ask spread on a stock exchange doesn't really the same as my be willing to pay $350k for your house when you would be willing to go as low as $300k. It kind of is if its a transaction that both parties are considering because the buyer has no more attractive properties (considering asking price) to buy, and the seller has no better bids. Its a different kind of market because houses aren't non-differentiated mass commodities, but from the perspective of either the buyer or seller the opposing offer is equivalent to the price on the opposite side of the market in stock trade, once things have been narrowed to the best alternative to either do the transaction or not.

dragonwriter 5y ago

> bid-ask spread isn't a property of transactions, it's a property of markets The upthread poste by dragontamer which introduced it seemed to ascribe it specifically to particular transactions, and I responded to what waa described in that post, viewing terminological minutiae as less interesting than the concept being discussed for which there seemed adequate clarity in context.

CrazyStat 5y ago
Well yeah, that's why I felt like they were conflating two different topics. The bid-ask spread on a stock exchange doesn't really the same as my be willing to pay $350k for your house when you would be willing to go as low as $300k.
- dragonwriter 5y ago
  > The bid-ask spread on a stock exchange doesn't really the same as my be willing to pay $350k for your house when you would be willing to go as low as $300k. It kind of is if its a transaction that both parties are considering because the buyer has no more attractive properties (considering asking price) to buy, and the seller has no better bids. Its a different kind of market because houses aren't non-differentiated mass commodities, but from the perspective of either the buyer or seller the opposing offer is equivalent to the price on the opposite side of the market in stock trade, once things have been narrowed to the best alternative to either do the transaction or not.