Glossary
What is Spread
The difference between the best buying price (ask) and selling price (bid). A market entry and an instant exit cost at least one spread.
How it works
BTC's spread on a major exchange is usually cents; small coins have noticeably wider spreads.
Example
Bid 62,960, ask 62,961: a $1 spread. On 0.27 BTC that is $0.27 — negligible. On an altcoin with a 0.3% spread and a 1% stop, the spread eats almost a third of an R.
Common mistake
Placing a tight stop on a coin with a wide spread: the price gap itself knocks it out.
Read next
Related terms
Frequently asked questions
- Where can I learn Spread step by step?
- In the Trading OS Academy: “Costs: fees, funding, slippage”, “How an exchange matches buyer and seller”.
- What is Spread related to?
- Slippage; Market order; Order book.
Plan versus outcome — for every trade
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