Spread

Spread refers to the difference between two prices, rates, or yields in the financial markets. It represents the gap or distance between the buying and selling price, interest rates on loans, or yields on investments. A larger spread generally indicates a higher level of risk or a greater difference in market conditions, while a smaller spread suggests tighter competition or narrower pricing variations. Understanding spreads can help investors and traders assess market liquidity, pricing efficiency, and potential profits or costs associated with buying or selling financial instruments.