Spot Bid Ask Delta

Definition ∞ Spot bid-ask delta represents the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset in the spot market. This metric quantifies the spread, indicating market liquidity and the cost of immediate execution. A smaller delta suggests higher liquidity and tighter spreads, while a larger delta implies lower liquidity and greater transaction costs. It is a direct measure of market efficiency and order book depth.
Context ∞ In crypto trading news, the spot bid-ask delta is a key indicator for assessing market liquidity and execution quality on various exchanges. Discussions often focus on how order book depth and trading volume influence the delta, especially during periods of high volatility or significant price movements. A narrow delta is generally preferred by traders as it reduces the cost of entering and exiting positions, reflecting a healthy and active market.