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I just learned about what a spread is and want to share this with everyone because it’s really important when trading.
Simply put, the spread is the difference between the buy price (bid) and the sell price (ask). It represents how much a buyer is willing to pay and how much a seller wants to receive. This difference is called the spread.
Imagine a scene at a traditional market: a buyer says, "I’ll buy apples for 90 rubles," but the seller says, "I’m selling for 100 rubles." The 10-ruble difference between these two prices is the spread. Pretty easy to understand, right?
Why is the spread so important? Because it shows the liquidity of an asset. When the spread is small, it means it’s easy to find buyers or sellers, and transactions happen quickly and efficiently. But if the spread is large, finding a trading partner becomes harder, prices can fluctuate wildly, and you might lose more than expected.
You can see the spread everywhere — in stock markets, forex, cryptocurrencies, and trading platforms. In fact, the profit for exchanges often comes from this difference. When you trade XRP, BNB, or ORDI on exchanges, the spread affects your profit because it’s the price gap.
Understanding the spread helps you make better trading decisions and choose assets with high liquidity.