A spread is the difference between the buying price and the selling price of a stock. This difference is common in all markets but can vary. Sometimes the buying and selling prices are almost the same, while at other times the difference is larger.

What causes a wide spread?
When the market is highly volatile, meaning prices rise and fall very quickly, the spread can widen. This can happen in the following cases:

• Low activity hours: On weekends or outside regular market hours, when fewer people are trading
• Market volatility: During major news, protocol updates, or economic changes that cause sudden movements
• Low liquidity: When there aren’t enough buyers or sellers for an asset, making it harder to find a price everyone agrees on

How does the spread affect you?
When a spread is very wide, the price you buy at can be significantly higher than the price you sell at, which could affect the total amount of your trade.

If the spread is higher than usual, we’ll notify you with a warning message. This gives you the information you need to decide whether to proceed with the trade.

If the spread is very large, your trade will be scheduled for the next market business day.