What is a Spread?

"Spread" is defined as the difference between the "Buy" price and the "Sell" price on an instrument at a particular time.

Plus500 offers two spread mechanisms for its instruments: Dynamic spread which is constantly adjusted according to the market spread during the period a position is open vs. a Spread which does not typically change in line with general market fluctuations while a position is open, but when the market is volatile and illiquid, may change to a new level so that the underlying market conditions are better reflected. Nevertheless, Plus500 aims to provide the tightest possible spreads at all times.

You should always check the applicable spread type and make sure you are aware of an instrument’s properties before you start trading. Information regarding the spread for a given instrument can be found on our website or trading platforms in the “Details” link next to the instrument’s name.