Iron Condor

Bid-ask spread

The gap between the highest price a buyer is offering (bid) and the lowest price a seller will accept (ask). A round-trip trade pays the full spread. On liquid options (SPY, large caps) the spread is a few cents; on thin strikes it can be a large share of the premium and is a hidden tax on the trade.

Learn it in context

Every term here appears inside the lessons and the simulator in the app, shown in use.

Get the app