What is the meaning of a -7 spread in the context of cryptocurrency trading?

3 answers

• Dec 20, 2021 · 3 years ago
  A -7 spread in cryptocurrency trading refers to the difference between the highest bid price and the lowest ask price being 7 units apart. It indicates a wide gap between buyers and sellers, which can make it difficult to execute trades at desired prices. Traders may need to adjust their strategies to account for the larger spread and may experience increased slippage. It's important to closely monitor the spread and market conditions to make informed trading decisions.
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• Dec 20, 2021 · 3 years ago
  When you see a -7 spread in cryptocurrency trading, it means that there is a significant difference between the highest price at which buyers are willing to purchase a cryptocurrency and the lowest price at which sellers are willing to sell. This wide spread can be an indication of low liquidity or market volatility. Traders should be cautious when trading with a -7 spread as it may result in higher transaction costs and potential price fluctuations. It's advisable to use limit orders and consider the spread when determining entry and exit points.
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• Dec 20, 2021 · 3 years ago
  In the context of cryptocurrency trading, a -7 spread signifies a large gap between the highest bid and lowest ask prices. This can indicate low trading volume or market inefficiency. Traders should be aware that a -7 spread may result in higher transaction costs and increased price volatility. It's important to consider the spread when placing orders and to closely monitor market conditions. By adjusting trading strategies to account for the wider spread, traders can potentially minimize risks and optimize their trading outcomes.
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