In trading, a spread is a difference between the buy (offer) and sell (bid) prices quoted for an item. Spreads play an important role in CFD trading because both derivatives are priced using them.
Brokers, market makers, and other suppliers commonly quote their prices using a spread. The price at which an asset is purchased will always be marginally above the underlying market, while the price at which it is sold will always be marginally below it.
Spreads in finance can refer to a variety of things, but they all refer to the difference between two prices or interest rates. The tactic is known as an option spread, for example, in options trading. This method involves buying and selling equal numbers of options with various strike prices and expiration dates.

In financial terms, a spread refers to the difference between two prices, rates, or yields. It commonly manifests in various markets, such as stocks, bonds, commodities, and forex. The spread essentially represents the gap between the bid price (the highest price a buyer is willing to pay) and the ask price (the lowest price a seller is willing to accept). A tight spread indicates a narrow difference, suggesting high liquidity and competitive trading, while a wider spread may indicate lower liquidity or increased market uncertainty. Traders and investors often pay attention to spreads as they impact the overall cost of a transaction. Understanding spreads is crucial for assessing market conditions and making informed decisions, particularly in the context of buying or selling financial instruments.