What is the spread?
Where have you heard about spreads?
Spreads make the financial news whenever a big gap opens between what market players will pay for shares or other assets and what they sell them at. That could be a sign that the market is slowing down and there’s a drop in liquidity.
What you need to know about spreads...
Much the same is true in foreign currency markets: the wider the spread, the bigger the profit.
In bond markets, spread has a slightly different meaning. It refers to the different yields available on similar but slightly different bonds.
In the futures market, it refers to the difference between the price of futures for the same security or commodity, but for different delivery dates.