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Spreads

What are spreads?

Learn more about spreads in trading
Understanding Spreads
A spread is the difference between the bid price (the highest price a buyer is willing to pay) and the ask price (the lowest price a seller is willing to accept, the price you buy at). Traders prefer tighter spreads (smaller difference) as they mean lower transaction costs, while wider spreads signal higher risk, lower liquidity, or increased volatility.
How to calculate spreads
Spreads are calculated with the ask price minus the bid price of an asset.