Spread Definition

The spread is the difference between the bid and ask price of an asset.

What is a Spread?

Spreads represent a cost of trading and can vary based on market liquidity, volatility, and broker pricing.

Tighter spreads generally reduce the cost of entering and exiting positions.

If a currency pair's bid is 1.1000 and ask is 1.1002, the spread is 2 pips.

Scalping is a short-term trading strategy that aims to profit from very small price movements, often within seconds or minutes.

A sector is a group of companies operating in the same segment of the economy, such as technology, energy, or healthcare.

Securities are tradable financial instruments representing ownership, a creditor relationship, or rights to ownership, such as stocks and bonds.