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When you view the price of an instrument you will see a sell price and a buy price. If you were viewing the price of a FTSE 100 share for example it might look like this:
ABC 350.25/350.50
The price to the left is the 'sell price' (bid) and the price to the right is the 'buy price' (offer). The difference between these two prices is the spread so in this example the spread is 0.25.
These bid/offer spreads are also used when trading Shares or exchanging Currency.
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