In the spot market, the spread is the difference between the bid and offer rates and is the trader's profit margin.

Question

Quizplus · Accepted Answer

The spread is indeed the difference between the bid and offer rates in the spot market, but it is not necessarily the trader's profit margin. The profit margin will depend on various factors, such as the size and frequency of trades, any additional costs or fees, and the effectiveness of the trading strategy.

In the Spot Market, the Spread Is the Difference Between