Bid-Ask Calculator

How to Use the Bid-Ask Calculator

This Bid-Ask Calculator helps you determine the spread and margin between the bid price and the ask price in a trading scenario. Here’s how to use it:

Step 1: Enter the Bid Price

• This is the highest price that a buyer is willing to pay for a security or asset.
• Example: Enter “1.430” in the “Bid Price” field.

Step 2: Enter the Ask Price

• This is the lowest price that a seller is willing to accept for the security or asset.
• Example: Enter “1.675” in the “Ask Price” field.

Step 3: Calculate the Spread and Margin

• Click the “Calculate” button to compute the spread (difference between the bid and ask prices) and the margin percentage.

Formulas:

• Spread: The difference between the ask price and the bid price.

  $$\text{Spread}=\text{Ask Price}-\text{Bid Price}$$

• Margin: The spread as a percentage of the ask price.

  $$\text{Margin}=\left(\frac{\text{Spread}}{\text{Ask Price}}\right)\times 100$$

Example Calculation

• Bid Price: 1.430

• Ask Price: 1.675

• Spread Calculation:

  $$\text{Spread}=1.675-1.430=0.245000$$

• Margin Calculation:

  $$\text{Margin}=\left(\frac{0.245000}{1.675}\right)\times 100=14.62687\mathrm{\%}$$

Clear the Form

• Click the “Clear” button to reset the fields and perform another calculation if needed.