A spread is the difference between the prices to purchase (offer) and sell (bid) an item in trading. The spread is an important aspect of CFD trading since it determines the prices of both derivatives. Spreads are a popular method for brokers, market makers, and other service providers to display their rates. This means that the cost of purchasing an asset will always be slightly greater than the market price. While the selling price will always be slightly cheaper. In the financial world, a spread can refer to a variety of things, but it always refers to the difference between two prices or rates. It is also a trading method known as an option spread. This is accomplished by purchasing and selling the same amount of options with various strike prices and expiration dates. Bid-Ask Spread The bid-offer spread, also known as the bid-ask spread, is simply the spread added to the price of an item. The bid-offer spread indicates how much money individuals are ready to pay for an asset...