Spread
The spread is the implicit cost of a round-trip trade. Liquid markets have tight spreads (1–3¢); thin markets have wide spreads (5–15¢).
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
The spread is the difference between the best bid and the best ask on a market.
Plain-English explanation
If YES has a best bid of $0.48 and best ask of $0.51, the spread is $0.03. Buying at market and then selling at market costs you $0.03 per share — the spread. Limit orders avoid spread cost (you post your own price) but may not fill.
Example
On a flagship US presidential market, spread is often 1¢. On a niche political primary, spread can be 5–10¢. Pros avoid market orders on wide-spread markets.