The bid-ask spread within a market is an indicator of the liquidity within that market.

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The bid-ask spread 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 a particular asset or security. A narrower bid-ask spread indicates that there are plenty of buyers and sellers active in the market, which means that it is more liquid. On the other hand, a wider bid-ask spread suggests that there aren't many buyers and sellers in the market, and it may be less liquid. Therefore, the bid-ask spread is a useful measure of market liquidity.

The Bid-Ask Spread Within a Market Is an Indicator of the Liquidity