A bid is a buy order and an ask is a sell order. The bid-ask spread is the difference between a stock’s bid price and ask price. Put differently, it represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to sell. If the bid price for a stock is 52, then the bid-ask spread is $2.
- A lower spread and high number of shares on the bid and ask sides indicates a market with higher liquidity.
Depth
“If there are many buyers and sellers at sequentially higher and lower prices, the market is said to have depth.” — Investopedia
Depth charts visualise the demand and supply of an asset.
(sourced from GDAX, 08/12/2017)