Bid-Ask Spread

Trading Basics

Bid-Ask Spread

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

Other Trading Basics

CFD

Contract for difference.

An OTC financial derivative where the counterparties agree to exchange the change in a price.

No underlying assets are exchanged.

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