Browse all articles related to this tag.
As a trader, you've probably heard the term "transaction cost" thrown around more times than you can count. But what exactly does it mean, and why is it so darn important? Buckle up, my friends, because we're about to dive into the nitty-gritty of this often-overlooked trading expense.
Ah, the bid-ask spread – a term that might sound as exciting as watching paint dry to a non-trader, but for those of us in the trenches, it's a crucial concept that can make or break our trades. Imagine you're at a bustling market, trying to buy a rare and exotic fruit. The seller quotes you a price, but then you notice that the person standing next to you is being offered a different price for the same fruit. What gives?