If you buy a #cryptocurrency and then decide to sell it, a smaller amount of money will return to your account balance and it's not just about the exchange commission, it's just that the sale was at a lower price.
Spread is the difference between the #buy and #sell price at the same point in time. It may be fixed (set by the exchange) or floating (depends on the market situation).
To see the spread, look at exchange rates: buying dollars/euros/yuan is always more expensive than selling. For example, if you're exchanging $100, you won't be able to buy $100 back immediately, but only $95 (or maybe even less, depending on the exchange rate). 😡
On exchange, the spread is smaller and may be imperceptible at first glance, but it is still there and affects the result of #trading
You can lose money because of the spread if:
▪️ Trade at a bad time when there are few traders and the spread is larger than usual.
▪️ Trade assets (stocks, cryptocurrencies, commodities, tokens, etc.) with low liquidity. In that case, the spread can be just huge (especially if you are the only buyer in that #market ).
▪️ Trade with high leverage, which will automatically increase your spread loss.
Save it so you don't forget 😉
