Term

Spread

The difference between the best bid and best ask in an order book.

Type:
trading
1
definition

The spread reflects market liquidity and trading costs. Tight spreads usually indicate high liquidity and competition among market makers; wide spreads indicate illiquidity or higher risk.

Example 1.1

"On a liquid BCH/USD pair, the spread might be just a few cents; on a thin token pair, it can be several percent."

All terms and definitions may update as the Cryptionary improves.