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Market Intelligence › Basic Terminologies
Difference between the two.
Published by The Retail Trader · JUL 31, 2026 · Order Flow
Bid-Ask Spread — difference between the two. This is a small amount of money in liquid stocks, much bigger in illiquid – and that is your hidden cost.
This term comes under Order Flow, in the "Language of ORDER BOOK" section. The following is running inside the depth window that opens on the screen:
Other terms in this group — understanding them together is more useful:
• Bid
• Ask / Offer
• Market Depth
• Order Book
• Matching Engine
• Price-Time Priority
• Last Traded Quantity
• Bid-Ask Imbalance
To read the entire group and all its examples in one place, see the journal "ORDER FLOW: FROM ORDER TO EXECUTION" - this term is taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.