MetricBeginner
Spread
The difference between the bid and ask price of an asset, representing a core component of trading cost.
Last updated: February 1, 2026
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A liquidity provider quotes a bid (buy) and ask (sell) price for an asset.
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The difference between these two prices is the raw spread.
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The broker may add a markup to the raw spread as a revenue mechanism.
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The client sees the final spread (raw + markup) on their trading platform.
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Spreads vary by instrument, time of day, market volatility, and liquidity conditions.