Glossary‎ > ‎

Spread

A  Spread is the difference between the bid and the ask price of a currency, commodity, bonds, security or other financial underlying.
Ask - Bid = Spread. The term Spread is mostly used in Currency Trading.
The Spread is also known as the bid-offer spread or buy-sell spread.
There is a relation between spread and liquidity, the smaller the spread the bigger liquidity.
If there is not much liquidity also called thin market, the spread has the tendency to increase.
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