What is the term for the difference between the offer price and the bid price?

The term for the difference between the offer price and the bid price is known as the bid-offer spread. This spread represents the transaction cost for buying and selling a security or asset. The bid price is the price buyers are willing to pay, while the offer price (or ask price) is the price sellers are asking for. The difference between these two prices indicates the liquidity of the market; a narrower spread often suggests higher liquidity, while a wider spread can indicate lower liquidity. Understanding the bid-offer spread is important for investors, as it can impact trading strategies and costs associated with buying or selling financial instruments.