📖 Crypto glossary: the spread
Open any order book and look at the two prices in the middle.
🟢 Bid = the highest price someone is willing to pay right now
🔴 Ask = the lowest price someone is willing to sell at right now
The gap between them is the spread.
Why you should care:
1️⃣ A market buy fills at the ask, a market sell at the bid. Buy and sell instantly and you lose the spread, even if the price never moved.
2️⃣ BTC/USDT usually has a tiny spread because so many people trade it. A small coin at 4am can have a gap of 1% or more.
3️⃣ A limit order lets you sit on your own price instead of paying the gap.
Quick check before a trade: if the bid and ask look far apart, slow down and use a limit order.
Do you check the order book before you buy, or just tap Market? 👇
#cryptoeducation #tradingtips #crypto #Binance
Open any order book and look at the two prices in the middle.
🟢 Bid = the highest price someone is willing to pay right now
🔴 Ask = the lowest price someone is willing to sell at right now
The gap between them is the spread.
Why you should care:
1️⃣ A market buy fills at the ask, a market sell at the bid. Buy and sell instantly and you lose the spread, even if the price never moved.
2️⃣ BTC/USDT usually has a tiny spread because so many people trade it. A small coin at 4am can have a gap of 1% or more.
3️⃣ A limit order lets you sit on your own price instead of paying the gap.
Quick check before a trade: if the bid and ask look far apart, slow down and use a limit order.
Do you check the order book before you buy, or just tap Market? 👇
#cryptoeducation #tradingtips #crypto #Binance