bitspread
Bitspread refers to the difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept. This difference, known as the spread, represents the cost of immediate execution or the bid-ask spread. In financial markets, it is a fundamental concept that reflects liquidity and transaction costs. A narrow bitspread indicates high liquidity, meaning there are many buyers and sellers actively trading the asset, allowing for quick execution at prices close to the prevailing market value. Conversely, a wide bitspread suggests lower liquidity, where it may be more difficult to buy or sell quickly without significantly impacting the price.
The bitspread is influenced by several factors, including the volatility of the asset, the trading volume, the