Low spread in trading refers to the difference between the bid price and ask price of a financial instrument. When the spread is low, it means that the market is highly liquid, and traders can buy or sell the instrument at a lower cost. This can have a significant impact on trading, as it reduces transaction costs and increases the likelihood of executing trades at desired prices.

Additionally, low spreads can lead to increased trading activity, as traders are more likely to enter and exit positions with ease. This increased activity can contribute to greater price stability and reduce the risk of sudden price fluctuations.

Overall, low spreads can have a positive impact on trading, making it easier and more cost-effective for traders to participate in the market.