What is spread?Spread
The gap between the Ask and the Bid, a hidden cost on every trade.
Animation · spread
Learn “spread” in an animated lesson
- Arbitrage StrategiesTriangular Arbitrage
Three currencies (dollar, euro, yen) and three exchange rates. If the third rate doesn't line up with the other two, going once around the triangle leaves you with extra money.
- CFDsOvernight Financing
Holding a CFD overnight means paying (or receiving) a financing fee. The longer you hold, the less you can ignore it.
- CFDsGoing Long and Short with CFDs
Shorting a CFD is as easy as going long: if you're bearish, sell to open, and profit when the price falls.
- CFDsWhat Is a CFD?
You don't buy the asset itself. You simply agree with the platform to settle the price difference between opening and closing.
- Crypto BasicsPlacing Orders on an Exchange: Maker and Taker
Buying crypto with USDT on an exchange: a market order fills right away but costs more in fees and may slip; a limit order is cheaper but might not fill.
- Forex BasicsBuy / Sell and the Spread
Why are you down the moment you open a trade? Watch Buy fill at the Ask and Sell fill at the Bid in real time, and see the spread widen at different times of day.
- Forex: Pending Orders & RiskSizing Your Position from the Stop
First decide the most you'll lose on this trade, then work back to the lot size from the stop distance. That's the heart of risk control.
- Indexes & ETFsHow to Choose an ETF
There are often several ETFs tracking the same index. Compare fees, tracking difference, fund size and bid-ask spread, and work out which is cheaper for long-term holding vs. frequent trading.
- Options BasicsReading an Option Chain
That big T-shaped table in your trading app: strikes in the middle, calls on the left, puts on the right, each cell with a bid and an ask. Learn to pick out the contract you want.
- Quant BasicsTransaction Costs and Turnover
A strategy that returns 15% a year in a backtest may have nothing left after fees and slippage. The more you trade, the more costs eat.
- Stock Trading: Next StepsReading the Order Book
Everyone's buy and sell orders sit in a single table. Follow the guided tour and read it line by line.
Related terms
See how “spread” works for yourself with an animation you can drag and play.
Go to “Triangular Arbitrage”