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What is spread and how is it calculated?

26/06/2026 06:53:25

A spread is the difference between the buy (ask) and sell (bid) price of a trading instrument.
It represents the cost of opening a position.

Spread = Ask Price - Bid Price

To achieve profitability in your position, the market price must either increase beyond the buying price or decrease below the selling price, depending on whether you’ve taken a long or short position.