Let’s talk about something that’s easy to confuse: the spread between the best bid and best ask.
The highest bid and lowest ask in the order book are usually different. The difference between them is called the bid-ask spread. The latest traded price records only the most recent trade; it doesn’t guarantee that another trade can be completed at the same price right now. Quotes also change as orders are added, canceled, and filled. Understanding the difference between these three prices is key to making sense of the seemingly different numbers on the page.
When checking quotes, look at the latest traded price, the best bid, and the best ask separately, then confirm which one the page is displaying.
#CryptoBasics
The highest bid and lowest ask in the order book are usually different. The difference between them is called the bid-ask spread. The latest traded price records only the most recent trade; it doesn’t guarantee that another trade can be completed at the same price right now. Quotes also change as orders are added, canceled, and filled. Understanding the difference between these three prices is key to making sense of the seemingly different numbers on the page.
When checking quotes, look at the latest traded price, the best bid, and the best ask separately, then confirm which one the page is displaying.
#CryptoBasics