Is it the highest or lowest bid? And how do i change it? Is it when you trade for all platforms or in one platform. And how do i change the bid myself, like how can i request more money for crypto??? I am sorry for asking thid, but i am desparite and the web is useless, it has shitty information
Spread is the difference between bid and ask (buy price and sell price). Its how the crypto exchange makes money. In times of low volatility the spread is low, and in high volatility its high, usually. As volume spikes and more traders trade, the spread is wider to capitalize on this. You cant really control it, its set by the exchange/trading platform.
You want a smaller spread. This way you make more and arent at risk of getting wicked out by volatility. When you have a higher spread it means the price you bought at and the price you want to sell at have more of a distance between them, so the market would need to cover that distance for you to profit.#Advice
Example 1 - Its a slow day with no volatility. You open a buy for at coin at price $1000. The sell price, due to spread being low at the exact moment you buy, is currently $996. The $4 difference is the spread. Your trade immediately starts out as -$4 in the screen. To sell now at breakeven you need for the sell price to move up $4 to $1000, which means the buy price moves to $1004. But thats just to breakeven. If you want to profit, price needs to move up more. How much more depends on your SL and TP levels (stop loss and take profit).
Example 2 - Some news just came out and your coin went from $900 to $1000 in 1 minute or 5m candles. Price is jumping all over the place, which makes it hard to enter. You set a market buy order for $1000 and due to volatility and spread it fills at $1040. The sell price is $1000 and the spread is $40 and jumping around. You now need to wait for price to go up $40 just to breakeven, which it might since its so volatile. It can also go down lower just as fast. If price drops and hits your SL target your trade will likely get closed out even lower. Say, you entered at $1040 and dont want to lose anymore than $40. You set your SL to $1000 but price dips so fast you lose $60 instead as the wick is so fast. #Write2Earn #TradeNTell $BTC $XRP
Volatility traders CAN make money but you have to know what you're doing and have wider stops set.@crypto_MOJ news