How does zero spread affect the profitability of cryptocurrency trading?

3 answers

• Thomas DyeFeb 22, 2023 · 3 years ago
  Zero spread refers to the absence of a difference between the bid and ask price of a cryptocurrency. This can greatly affect the profitability of trading as it eliminates the need to overcome the spread before making a profit. Traders can enter and exit positions without incurring any immediate loss, allowing for more efficient trading strategies. However, it's important to note that other factors such as market volatility and liquidity also play a significant role in determining profitability.
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• Robb AaenJan 15, 2022 · 4 years ago
  Zero spread can be a game-changer for cryptocurrency traders. With no spread to overcome, traders can execute trades at the exact market price, maximizing potential profits. It eliminates the need to wait for the market to move in your favor before making a profit. However, it's crucial to consider other costs such as transaction fees and slippage, which can still impact overall profitability.
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• billFeb 06, 2025 · a year ago
  Zero spread is a feature offered by some cryptocurrency exchanges, such as BYDFi. It allows traders to execute trades without incurring any spread costs. This can be particularly beneficial for high-frequency traders and scalpers who rely on small price movements to make profits. However, it's important to carefully evaluate the overall trading conditions, including liquidity and order execution, before solely relying on zero spread for profitability.
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