trading
spread
The difference between the bid price and ask price of a security, or between two interest rates.
Example
"The tight spread on the currency pair indicated high liquidity in the market."
💡 Memory Tip
Like butter SPREAD on bread — the spread fills the GAP between the buy and sell price.
Etymology
From 'spread' (to extend) — the gap that extends between two prices.
Common Misspellings
spredspraedspreadespreed
Related Terms
See Also
bidasktrading