Bid ask spread and average bid and ask sizes

Larger bid ask spread = less liquidity Higher/ larger averge bid and ask sizes = more liquidity/quality (bec greater mkt depth) Can someone help to confirm this is correct. Thanks

Larger bid ask spread = less liquidity - Yes Not sure about second

Larger bid ask spread = less liquidity - Yes Larger averge bid and ask sizes = more liquidity - Yes

Thanks, can be quite tricky…just want to make sure i can this simple one right, larger spread less liquidity and larger sizes more liquidity.

larger spread less liquidity and larger sizes more liquidity - YES

Thanks for your input again cfaboston28 and also LaGrandeFinale.

pmoonoi Wrote: > Higher/ larger averge bid and ask sizes = more > liquidity/quality (bec greater mkt depth) that is an indication of higher volume that represents higher liquidity