Understanding Spread and Leverage
May 29, 2026
A simple guide to two key terms traders should understand before trading.
What is spread
Spread is the difference between the buy price and the sell price of an instrument. It is one part of trading cost.
What is leverage
Leverage lets you control a larger position with a smaller amount of margin. It can increase gains and losses.
Before trading
Review margin needs, possible loss, and account rules before opening a position.