In this article, we will try to explain what the term spread means and how many types there are. If you are interested in investment, stock market and economy, if you see the term spread and wonder what it means. In this article you will find the answer in a clear and short way.
Spread is the difference between buying and selling financial securities. The index also represents the selling price of assets, such as stocks and commodities. Spread is the difference between the selling and buying price of a product in the stock market and is expressed as PIP (price interest point price).
So, how many types of spreads are there? There are 2 types of spreads, the first of which is the fixed spread type. Regardless of such market conditions, the Spread remains fixed at a certain rate. The other type manifests itself as a dynamic spread. In the dynamic type, it varies completely according to the state of the market.