Spread
Plain English
The difference between the highest buy price and lowest sell price. A $100 bid and $101 ask = $1 spread. Tighter spreads mean more liquid, efficient markets. Wide spreads mean less liquidity - you lose more money buying and immediately selling.
Technical
Bid-ask spread representing the difference between highest buy order (bid) and lowest sell order (ask). Indicates market liquidity and trading costs - tighter spreads reflect efficient price discovery and low transaction costs. Market makers profit from spread. Percentage spread calculated as: (Ask - Bid) / Midpoint. Critical for assessing DEX vs CEX competitiveness.