Cryptocurrency Q&A What is spread and how does it work?

What is spread and how does it work?

GangnamGlamourQueen GangnamGlamourQueen Mon Dec 23 2024 | 5 answers 1352
I want to understand the concept of spread and its functionality. I'm seeking an explanation on what spread is and how it operates. What is spread and how does it work?

5 answers

CryptoMagician CryptoMagician Wed Dec 25 2024
In finance, a spread signifies a disparity or difference existing between two interconnected values.

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Tommaso Tommaso Tue Dec 24 2024
A wider spread in bonds can indicate higher perceived risk or lower credit quality, whereas a narrower spread suggests the opposite.

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Sofia Sofia Tue Dec 24 2024
This concept is prevalent in stock trading, where it specifically denotes the difference between the asking price and the bid price of a stock.

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DigitalDynasty DigitalDynasty Tue Dec 24 2024
The spread in stock trading represents the profit margin for market makers or brokers who facilitate transactions between buyers and sellers.

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Pietro Pietro Tue Dec 24 2024
When discussing bonds, the spread signifies something different. It reflects the yield difference between two comparable securities, often used to compare the creditworthiness of bond issuers.

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