A spread is the difference between a stock's buy price and sell price. This difference is common across all markets, but it can vary. Sometimes the buy and sell prices are nearly the same, and other times the difference is larger.

What causes a wide spread?

When the market has high volatility, meaning prices rise and fall very quickly, the spread can widen. This can happen in the following cases:

• Low-activity hours: weekends or outside regular market hours, when fewer people are trading.
• Market volatility: during major news or economic changes that cause sudden price movements.
• Low liquidity: when there aren't enough buyers or sellers for an asset, making it harder to find a price everyone accepts.

How does the spread affect me?

When a spread is very wide, the price you pay to buy can be significantly higher than the price you get when you sell, which could affect your total transaction amount.

If the spread is wider than usual, we'll let you know with a warning message. This gives you the information you need to decide whether to continue with the transaction.

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