Spread
Volume Profile Analysis glossary · Profile Anatomy & Volume Nodes
Definition
The difference between the bid and ask quotes for an instrument. A primary transaction cost component.
Spread in plain English
The spread is the gap between the highest price buyers are currently offering (the bid) and the lowest price sellers are asking for (the ask). It matters because when you buy you usually pay the ask and when you sell you get the bid, so that little gap is a cost you eat on every trade — like a currency booth that buys dollars from you cheap and sells them back to you dear, pocketing the difference. A tight spread means cheap, easy trading; a wide spread means you're paying more just to get in and out.
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