The spread is the difference between the bid and ask prices. It refers to the difference in price at which a buyer is willing to buy a security and the price that a seller is willing to sell it for. This difference constitutes the spread, which is typically expressed in terms of pips, points, or basis points.

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The Spread Is the

Question 22

Multiple Choice

The spread is the

A) difference between the bid and ask prices
B) commission charged by the broker
C) difference between the purchase and sale prices
D) difference between the commissions charged by full service and discount brokers

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