The spread is the difference between an asset's bid price (the price at which you can sell) and ask price (the price at which you can buy). It is a cost incurred on each trade, and it fluctuates depending on market conditions, liquidity, and volatility. The spread is often variable and may widen or narrow based on the market environment. On the contrary, a fee is a flat percentage charged when you open or close a crypto position. Fee is generally charged as a flat percentage of the trade amount. This can be applied in addition to, or instead of, the spread.
Understanding spread and fee, as well as spread and commission, is essential for managing trading costs effectively.
What is the difference between a Spread and a Fee?
Updated over 2 weeks ago