> For the complete documentation index, see [llms.txt](https://prestige-capital-docs.gitbook.io/prestige-capital-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://prestige-capital-docs.gitbook.io/prestige-capital-docs/prestige-revenue-generation-layouts/bid-ask-spread.md).

# Bid-Ask Spread

**What it is**: Market makers quote two prices for every asset: the bid (buy) price and

the ask (sell) price. The difference between these two prices is known as the bidask

spread.<br>

**How it works**: Market makers buy at the lower bid price and sell at the higher ask

price. The spread is their profit margin.<br>

**Bull Market**: In a bull market, trading volumes are typically higher due to increased

investor interest. Market makers benefit from more frequent trades, earning

consistent profits from the bid-ask spread.<br>

**Bear Market**: Even in a bear market, trading continues as investors might be selling

off their assets. Although volumes might be lower, market makers still earn from the

bid-ask spread on each transaction.

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