Plain English
The spread is the gap between the best bid (highest buying price) and best ask (lowest selling price) in an order book. A tight spread (small gap) indicates deep liquidity; a wide spread indicates thin liquidity.
How it actually works
If Bitcoin’s best bid is $70,000 and best ask is $70,010, the spread is $10 — very tight, indicating a deep market. For thinly-traded altcoins, spreads can be 1–5% wide. Market makers profit from the spread by simultaneously bidding and asking; they earn the difference when both sides get filled. The cost of crossing the spread (market-buying at ask, then market-selling at bid) is a real cost most traders underestimate.
What it means for you
For members trading meaningful size, spread is part of the execution cost calculation. Crossing a 0.1% spread costs nothing visible. Crossing a 2% spread is a 2% loss baked into the round-trip trade.
We cover spread awareness as part of trade-execution discipline. Members size positions, choose venues, and time trades partly based on spread economics.
Educational content only. Not investment, tax, or legal advice.