I just realized that many of you are still confused about what the spread is in trading. Today, I will explain it more clearly.



What exactly is the spread? It is the difference between the bid price and the ask price of any asset. It sounds complicated but in reality, it’s very simple.

Imagine you go to the market to buy apples. The buyer says "I buy at 90 rubles," and the seller says "I sell at 100 rubles." The 10-ruble gap is the spread. Understanding it this way helps you grasp its essence.

Why should you care about what the spread is? Because it directly affects your trades. A small spread means the asset has good liquidity, making trading easy and quick. Conversely, a large spread usually occurs when there are few buyers and sellers, leading to strong price volatility and difficulty finding trading partners.

You will encounter the spread everywhere — in stock markets, forex, cryptocurrencies, and even trading platforms. This difference between the bid and ask prices is the profit source for brokers and trading platforms. Therefore, understanding what the spread is will help you calculate your trading costs more accurately.
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