Fees & Investing

What is the difference between a fixed and variable spread?

Assetise provides assets with either fixed or variable spreads. Fixed spreads maintain a constant difference between the BUY and SELL prices, regardless of any fluctuations in the product’s price. On the other hand, variable spreads, also known as ‘Floating’ spreads, can change, meaning the difference between the buy and sell prices may vary depending on market conditions.

What is a spread?

Assetise provides two-way prices for all our clients. The spread is the difference between the SELL price and the BUY price of a certain asset.

For example, if the SELL price is 1.3504 and the BUY price is 1.3507, the spread is the difference between the two: 2 pips.

The spread is reflected in the valuation of a position as soon as the trade is opened.

When do I pay the fee for crypto investments?

The impact of the spread will always be factored into a customer’s profit and loss straight after the execution of a buy order and for the duration that the position is open for.

You pay the fee every time you buy or sell a crypto asset. The fee is disclosed to the trader on the screen before they take any action. It’s important to know that the profit and loss for each position includes both the fee you paid when you opened it and the fee you WILL pay when you close it. This way, it’s a lot easier for the trader to keep a tab on your crypto investments with the cost of these trading fees already being accounted for.

The spread cost will be solidified upon the closure of the position subject to any changes in the market price that may happen between the time the customer buys the asset and sells the asset.

What is the difference between a spread and a fee?

The spread is the difference between the buy price of an asset and the sell price of an asset. A fee is the flat percentage that you will be charged when you open or close a crypto position on a trade.

What is a typical spread?

The typical spread, also referred to as the typical market price, represents the average spread cost on a standard trading day. It is calculated using a generic amount and is utilized when initiating or finalizing a position.

Since spreads are subject to market fluctuations, they can vary based on the market conditions. The spread for a specific cryptocurrency transaction today might be significantly different from the same transaction executed tomorrow due to changes in the market. Consequently, during periods of high volatility, the typical spread does not hold true.

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