What is a spread?

A spread refers to the difference between the Bid (buy) price and the Ask (sell) price. This difference represents a type of trading cost, as it is essentially the fee that a trader pays the moment they enter a position. Spreads tend to be narrower when liquidity is high, while they widen during periods of high volatility or when trading volume is low. MIM offers competitive spreads on major instruments to enhance clients’ trading efficiency. Therefore, understanding spreads allows traders to clearly identify cost structures when designing their trading strategies.