![Screenshot_20210907_034239.jpg](https://cdn.steemitimages.com/DQmcmk7vfaZaabNbpbpEopr5FnsZVnrZ4Duign2FHgRXZ87/Screenshot_20210907_034239.jpg) ***❣️Hello good morning professor @awesononso thank you for another season of this cryptoacademy and for the class on spread on supply and demand, very well explained.*** ❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ °•.❀ ***1.Properly explain the Bid-Ask Spread.***

📌To understand a little about this process, we are going to explain a little about supply: What is the total amount of goods and services that the market has and demand is the total amount available and necessary With this we can clearly say that the amount by which the price of an offer passes the offer price of an asset in the market can be called differentiating the supply and demand This is a difference between the highest price that a buyer is able to pay for an asset and the lowest price that a seller is able to accept. Who sells will receive an offer price while the buyer will pay this offer price The price that a security obtains is given by the market at the time since for him that is what it is worth is a unique value this is a very common way to monetize commercial activities in the case of the witty structure of changing cryptocurrency The higher the supply price goes up, the higher the price the lower demand

❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ ***2. Why is the Bid-Ask Spread important in a market?***

📌The supply and demand differential is very important in a market since the market equilibrium determines its quantity and its price from that price is the point of view of the company and the buyers since this tells us how much they can pay If there is a lot of lack and very little demand, the price of any product decreases since this product has a large inventory that they do not want to buy, so the product is forced to lower its price and when there is little supply But there is a lot of demand we can find many consumers trying to buy the few products and so they go up For that reason, when supply and demand are balanced, everything is balanced.

❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ ***3. If Crypto X has a bid price of $5 and an ask price of $5.20,*** a.) Calculate the Bid-Ask spread. b.) Calculate the Bid-Ask spread in percentage. 📌* Bid and ask difference - bid price - bid and ask differential price = $ 5, 20- $ 5 ***Bid and ask spread = $ 0.2*** B) calculate the Bid-Ask spread in percentages ***% spread = (spread / sale price) x100*** ***% spread = ($ 0.2 / $ 5.20) x100*** ***% spread = 3.85*** ❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ ***4. If Crypto Y has a bid price of $8.40 and an ask price of $8.80*** a.) Calculate the Bid-Ask spread. b.) Calculate the Bid-Ask spread in percentage. 📌If crypto Y has an offer price of $ 8.40 and a sale price of $ 8.80. * A) Calculate the Bid-Ask spread. * Spread of bid and ask = bid price - bid price spread of bid and ask = $ 8.80 - 8.40. ***= Spread of supply and demand = 0.4*** * B) calculate the Bid-Ask difference in percentage ***% spread = (spread / price of vents) x 100*** ***% spread = ($ 0.4 / 8.80) x100*** ***=% spread = 4.54*** ❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ °•.❀ ***5. In one statement, which of the assets above has the higher liquidity and why?***

📌CRYPTUS X has greater liquidity since it is the smallest differential, this means that the purchase and sale prices are close, it means that more exchanges are made

❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ °•.❀ ***6. Explain Slippage***

📌We can say that slippage is the difference between the price they expect to pay or receive and the price that is actually paid or received, all of this due to market fluctuations until the moment they are executing their operation. Slippage is very important At the time of investing since it is present in each of the purchases and sales of securities, this normally occurs when there are periods of greater volatility and when market orders are used

❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ °•.❀ ***7. Explain Positive Slippage and Negative slippage with price illustrations for each.***

📌Positive slippage can result in a good buy or sell if we try to sell a stock strongly at $ 6.60 but if the offer is still going up we could have a much higher offer.

Example : We will sell a share at $ 50 but because of the fluctuation this vebta from a to 59.01 = here the positive slippage of $ 5th. 01 - $ 50 = $ 0.1

📌Negative slippage occurs when the operation goes down cutar at a price that does not suit us Example : The stock wants to sell at $ 50 but due to the fluctuations this vebta gave at 40.99 the negative slippage is $ 50- $ 40.99 = 1

❀.•° ✿.•° ❀.•° ✿.•° 🌸 °•.✿ °•.❀ °•.✿ °•.❀ ***@krousse10***