📘 Binance Crypto Learning Series — Part 110
Bid-Ask Spread: The Hidden Cost of Trading
🔥 Even if your trade looks profitable, the difference between your entry and exit prices can affect your results!
In crypto trading, the Bid-Ask Spread is the difference between the buyers’ highest bid and the sellers’ lowest asking price.
🟢 Bid: The highest price buyers are offering.
🔴 Ask: The lowest price sellers are asking.
📊 Simple Example
Best Bid: $100,000
Best Ask: $100,050
Spread: $50
If you buy immediately and sell at the same time, you could still lose money because of the spread—even before fees.
🔍 When does the spread matter?
Spreads can be wider for low-liquidity coins.
Spreads are often narrower in high-volume markets.
It’s useful to check Bid-Ask prices before placing a Market Order.
🧠 Golden Rule: The narrower the spread, the smaller the price gap when buying and selling immediately—but fees and slippage matter too.
Do you check the spread before trading, or just look at the chart? 👇
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