Let’s cut straight to it: every time you trade, you’re paying a fee that isn’t included in the “trading fee.” It’s called the spread.
So what is the spread?
It’s the difference between the buy (ask) price and the sell (bid) price of an asset. You buy at the higher price, sell at the lower one. The gap in between? That’s the spread and that’s how market makers and many exchanges make their money.
Basically, if you sell and buy at the same time, the best price is…different. You sell for $100…but you buy for $101. Meaning you’ve immediately lost one dollar.
Who Profits from the Spread?
Spoiler: not you.
Market makers (big institutions who trade on the platform you use) set those prices. They offer liquidity (which is good, there are always a lot of trades happening), but they also build in that sweet little margin. And many exchanges? They let this fly, untracked. Well, not untracked, but you don’t know how wide the spread is until after the trade’s done. At that point, surprise you got clipped.
At Ouinex, We Show You the Spread in Real Time
No smoke. No mirrors.
You see the spread before you click that button. And it’s tight tighter than slim-fit jeans.
We work with competing market makers who battle it out to offer you the best prices. That means narrower spreads, less cost, and more transparency.
You win.
How can we have such tight spreads? Because of our no-CLOB execution model, which helps put retail traders first. You can read all about our no-CLOB model and how it works here.
Why Does This Matter?
Because trading isn’t just about entry and exit it’s about cost control. And if your platform hides those costs behind complex models or vague interfaces, you're bleeding edge without realizing it.
Can’t get enough about spreads? Or simply still find the concept a bit…difficult to grasp? Read more about it in our glossary.
Key Takeaways:
- The spread is the difference between the buy/sell (ask/bid) price.
- Market makers and exchanges benefit from it.
- Most platforms only show it after your trade.
- Ouinex shows it live and keeps it lean (our spreads are tighter than slim-fit jeans).