What is spread in crypto exchange?

What Is Spread in Crypto Exchange?

The spread is the difference between the price at which you can buy (ask) and the price at which you can sell (bid) on an exchange. If the buy price is Rs 50,10,000 and the sell price is Rs 50,00,000, the spread is Rs 10,000. The exchange or market makers often earn from this gap. A tighter spread means lower cost for you; a wide spread means you pay more when you buy and receive less when you sell.

Why It Matters

Spread is a hidden cost. On liquid pairs (e.g. BTC/INR) the spread is usually small. On less liquid tokens it can be large. Check the order screen before you confirm; the effective rate you get includes the spread.