Spread: What is a spread?
Spread can have many meanings in economics. However basically they all refer to the difference between two prices, rates or income. One of the most common definitions is that spread is the gap between bid and consideration is security or assets such as stocks, bonds or commodities. This is known as bid-ask spread.
In finance, spread is the difference between two prices, rates or income.
The most common type is the bid-ask spread, which refers to the middle ground between bids (from buyers) and securities or property prices (from sellers).
-Expanded trading refers to the difference between a short position (i.e. sale) in one futures contract or currency and a long position (i.e. purchase) between others.
Spread Trading Position – Can also refer to the difference between a short position (i.e. sale) in one futures contract or currency and a long position (i.e. buy) in another. This is officially called spread trade. Spreading underwriting can mean the difference between the amount paid to the issuer of the security and the price paid by the investor for the security in which the underwriter sells it to the public. The difference is that when making a loan, the spread can refer to a borrower the price payable for the loan in excess of the benchmark income.
For example, if the base interest rate is 3 percent and the borrower is mortgaging 5 percent, the spread is 2 percent. The bid-ask spread is also called bid-offer spread and buy-sell. The spread of such assets is affected by many factors, including supply or float, demand or interest in the stock, total trading activity of the stock.