Of course, the investor expects that the spread offered by the issuer be as narrow as possible since a narrow spread can reduce the trading cost. For example, in the event that an issuer offers a bid & ask order of 0.062/0.063 for a CBBC, if the investor buys at the spot price of $0.063 and sells at the price of $0.062, the spread of $0.001 between these two prices is the investor's trading cost for such deployment, while the spread of $0.001 is already the minimum spread in the main board trading system.
A lot of investors only compare the nominal price or spot price and ignore the bid-ask spread when comparing CBBCs. However, the amount of the spread can substantially increase the trading cost at any time. Try to compare the following two CBBCs:
Bid price | Ask price | |
---|---|---|
Bull A | 0.059 | 0.063 |
Bull B | 0.065 | 0.066 |
Bid price | Ask price | |
---|---|---|
Bull A | 0.110 | 0.112 |
Bull B | 0.104 | 0.108 |