Spread

The spread is the numerical difference between the bid price and the ask price of an asset and represents the broker’s fee or trading cost. Spreads can be fixed or variable, depending on market conditions and the broker’s pricing model.

Example:
The difference between a stock’s bid and ask price reflects transaction cost.

Disclaimer

This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.

The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.