Diana Paul avatar
Written by Diana Paul
Updated over a week ago

The price spread is the difference between the highest buy order and the lowest sell order on a particular platform. At the point where buyers’ and sellers’ orders meet, they’re matched and complete each other.

One of the most common types of spread is the bid-ask spread, which refers to the gap between the bid (from buyers) and the ask (from sellers). In fact, it’s a gap that can be created by the differences between the prices of limit orders placed by different traders. Market spreads open a lot of arbitrage opportunities for experienced traders.

For more details, check the article in the Trading section.

Did this answer your question?