The gap between the buying and the selling price
The spread is the difference between the buy and sell price at the same moment, and it is the real cost of the trade. Even where commission is advertised as free, you start that far behind. Actively traded currencies have narrow spreads, and they widen in volatile hours and around data releases. Currency exchange works the same way, which is why airport counters quote such wide prices.
A buy price of 150.03 against a sell price of 150.00 is a spread of 0.03.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.