Capital Markets · Sales & Trading
Bid Ask Spread
This question asks you to explain how bid and ask quotes describe the prices at which an asset can be bought and sold.
Interview question
- Difficulty
- Easy
- Topic
- Capital Markets
- Subtopic
- Sales & Trading
What this question trains
This problem checks whether you understand a basic market pricing concept that comes up often in sales and trading interviews. It tests your ability to explain the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, and to connect that gap to trading conditions such as liquidity and transaction cost. Interviewers ask this because it shows whether you can read market quotes correctly and think about how easily an asset can be traded in real markets.