Skip to main content
TradeFeeCalc

What is Bid-Ask Spread?

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask) — a hidden cost on every trade.

The bid-ask spread is the gap between what buyers are willing to pay and what sellers are asking for. It's the most immediate cost you pay when entering and exiting any trade, even before exchange fees.

Example:

  • BTC bid: $49,990 (highest buyer price)
  • BTC ask: $50,010 (lowest seller price)
  • Spread: $20 (0.04%)

    • If you buy at $50,010 and immediately sell at $49,990, you lose $20 without the price moving.

    Maker vs. taker and the spread:

  • Taker orders (market orders): You cross the spread and pay the ask. Immediate fill, but you absorb the spread cost.
  • Maker orders (limit orders): You post at a price and wait. If filled, you get the better side of the spread and pay lower exchange fees.

    • Spread varies by:

    FactorEffect on Spread
    Market liquidityHigh liquidity = tight spread
    Time of dayPeak hours = tighter spread
    Market volatilityHigh volatility = wider spread
    Asset popularityBTC/ETH much tighter than altcoins

    Real-world spread costs:

    BTC/USDT on Binance: ~0.01–0.02% spread

    Altcoin pairs: 0.1–0.5% or wider

    For scalpers who open and close many positions, spread cost accumulates rapidly and must be factored into strategy profitability alongside exchange fees.

    Related Calculators

    Fee Calculator

    Calculate exact trading fees for crypto futures and spot trades. See how fees affect your net P&L across different exchanges and fee tiers.

    Scalping R:R

    Calculate risk-to-reward ratios optimized for scalping strategies with tight stops and quick profit targets on 1-minute to 15-minute timeframes.

    Related Terms

    SlippageMaker FeePosition SizingWin Rate