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Bid-Ask Spread Explained | Options Trading

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A bidask spread is an amount by which the ask price exceeds the bid price for an asset in the market. It is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. Learn more from Mike about bidask spreads and debit/credit trades.

0:00 Introduction
0:48 What is bidask spread?
2:19 Debit Trades: Buying a Call
3:39 Credit Trades: Selling Put Spread
4:43 BidAsk Spread Visualization
10:05 Takeaways: BidAsk Spread
12:00 Questions/Contact info

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This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content are not, nor are they intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Supporting documentation for any claims, comparisons, statistics, or other technical data, if applicable, will be supplied upon request. Multileg option strategies incur higher transaction costs as they involve multiple commission charges. Please read the Characteristics and Risks of Standardized Options Disclosure prior to trading options. This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.

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