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What are spreads?

The spread is the difference between the buying price (offer) and the selling price (bid) of an exchange-traded security. It is also known as the bid-ask spread and is one of the implicit transaction costs in trading.

Typically, liquid investment instruments have lower spreads than less liquid ones. When screening the ETF market, True Wealth always takes the spreads into account and favors the more liquid instrument if all other relevant parameters are identical.

More questions in "Costs"

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