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46 results for Spread
Definitions
8 foundSpread
The gap between the best bid and the best ask. You pay it on every round trip.
Bid and ask
The best price a buyer will pay (bid) and the best price a seller will accept (ask). The gap between them is the spread.
Market order
An order to trade immediately at whatever price the book offers. Fast, and it pays the spread plus any slippage.
Taker
A trader whose order crosses the spread and removes liquidity. Takers pay the higher fee.
Spread from a lesson
The gap between the best bid and the best ask. You pay it every time you go in and out.
Market maker from a lesson
A firm that quotes both a buy and a sell price all day and earns the spread. It does not care which way price goes.
Standard deviation from a lesson
A measure of how spread out numbers are. Wide spread means high volatility.
Read it in context: Bollinger Bands, ATR and volatility tools
Diversification from a lesson
Spreading risk across things that do NOT move together. Five altcoins is not diversification.
Lessons that explain this
37 foundSpread, slippage and the true cost of a trade
Spread, slippage and the true cost of a trade…
Task: place your first practice trade
…ce moved while I hesitated. I had no idea why. Nobody had told me what a spread was. A spread is the small gap between the buy price and the sell price. You will learn more about it in Module 2, but notice it now: the pr…
Task: close a trade and read the result
…on to avoid trading; it is a reason to trade less often and with a plan. Spread, slippage and fees in Module 2 goes deeper. In kwacha, at roughly MK 1,750 per dollar, that $0.36 is about MK 630. Tiny. But if you keep rec…
Bitcoin, altcoins, stablecoins and tokens
….00 That is the job Total: $90.60, a loss of $9.40, or 9.4%. Notice that spreading money across four coins did not protect you, because all four fell together. Only the stablecoin held. That is why Portfolio heat in Modu…
Exchanges and order types
… on the other. The gap between the highest bid and the lowest ask is the spread . Your order either takes what is already there, or joins the queue and waits, adding to it. Module 2's The order book and Spread, slippage …
Task: rest a bid on the order book
…he order book. The gap between the highest bid and the lowest ask is the spread. Your new bid takes its place among the other buyers, in price order: the higher your price, the closer to the front of the queue. Put it fa…
Choosing an exchange and hardening your account
…k record that counts. Plenty of buyers and sellers on your coins A small spread and a deep book on your markets at the size you trade On a thin exchange, slippage is a hidden fee on every trade. Module 2's Liquidity and …
Inside the order book
…nt price. The lowest ask is the best price you can buy at right now. The spread is the gap between the best bid and the best ask. Halfway between them is the mid price . That is usually the number the ticker shows. Here …
Who you are trading against
…et maker quotes both a buy price and a sell price all day, and earns the spread. They do not care which way price goes. They care about their inventory , meaning how much of the coin they are holding. If they build up to…
Liquidity, volatility and why crypto moves so far
…f liquidation prices. Market makers, seeing everything go one way, widen spreads and pull their bids. You met them in the participants lesson . The remaining bids are thin, so each forced sale moves price further. A 3% d…
On-ramps, off-ramps, records and tax
…cket money. Card purchase. Instant and expensive: 2% to 5% including the spread hidden in the quoted rate. Fine for a first $20 test, wasteful beyond that. Mobile money into a P2P (person-to-person) trade. Airtel Money, …
Stablecoins as cash: P2P, mobile money and moving money in and out in Africa
…on African P2P markets. Almost every merchant quotes it, which keeps the spread tight. Its issuer publishes reports on the reserves that back it; read them and judge for yourself. USDC (Circle) is widely used in regulate…
OCO, take-profit, trailing stops and time-in-force
… trade Post-only Rest as a maker; reject the order if it would cross the spread and take You want the maker fee and are willing to miss the fill Two more you will meet in Module 8's operating model lesson : an iceberg or…
Timeframes and how to stack them
…nd three costs rise as you drop down. Costs take a bigger bite. Fees and spread are roughly the same per trade whatever the chart. Targets on a fast chart are small, so costs eat a larger share. Less signal, more noise. …
Support, resistance and how to draw levels properly
…undred dollars wide, not one price. Prefer levels touched several times, spread out over time. Three touches over four months is far stronger than three touches in one afternoon, because more different people remember it…