Definition. The difference between the best offer (ask) and the best bid.
How it works
The spread is the cost of immediacy: whoever wants to buy or sell right now pays it to the side waiting with a limit order. In liquid markets it's usually one tick.
Example
Bid 51,907, ask 51,908: the spread is 1 point. Just before a data release it can widen to several points.
What to watch out for
A wide spread signals low liquidity and the risk of slippage.
This is the DOM – the order book in the Hetman Terminal (Front Line). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →
♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →
You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
