I just realized that many people are still confused about what the spread is, especially when starting to learn about forex and other markets. Actually, it's very simple.

The basic spread is the distance between the bid price and the ask price. To understand better, imagine you're at a market. The buyer says they are willing to buy apples at 90 rubles, and the seller wants to sell at 100 rubles. The 10-ruble difference is the spread. Pretty easy to understand, right?

But why is the spread so important? I see that a small spread = easier, faster trading, and assets with good liquidity. Conversely, a large spread makes it harder to find buyers or sellers, and prices can fluctuate strongly. That’s why traders closely monitor what the spread is in forex and other markets.

You can encounter the spread everywhere – in stock markets, forex, cryptocurrencies, even exchange services. That’s how trading platforms make profits, from the difference between buy and sell rates.

Looking at some current pairs, XRP is at 1.3469 with a decrease of 1.95%, BNB at 652.4 down 0.61%, ORDI at 4.162 down 2.73%. These fluctuations are also related to the spread at different price levels. Understanding what the spread is will help you trade smarter on Gate or any other exchange.