In financial markets, the term "spread" refers to the difference between the buy and sell prices of a financial asset, such as a currency pair or stock. A low spread means that the difference between the buy and sell prices is relatively small, which can be advantageous for traders as it reduces their trading costs.

A low spread is typically indicative of high liquidity in the market, meaning that there are a large number of buyers and sellers actively trading the asset. This can result in faster execution times and less slippage, which is when the price a trader receives differs from the price they intended to trade at.

Overall, a low spread can be an important consideration for traders when choosing a broker or deciding on a trading strategy.

In financial markets, a "low spread" refers to the small difference between the bid price (the price at which buyers are willing to purchase an asset) and the ask price (the price at which sellers are willing to sell it). This narrow gap indicates high liquidity, meaning the asset can be bought and sold quickly without significantly impacting its price. Low spreads are common in heavily traded assets like major currency pairs in forex or popular stocks. They are advantageous for traders as they reduce transaction costs, making it cheaper to enter and exit positions. Low spreads are particularly beneficial for high-frequency trading strategies where minimal cost differences are crucial for profitability.