Below I explain how free trading venues are profitable and why they can offer tighter spreads, by highlighting...They monetize the bid-ask spread....It’s a win-win: retail users trade free, the maker earns the spread, the platform earns the maker’s fee...RPI/segmentation is what keeps spreads tight, sometimes on par with Binance, so you get “Binance spreads...

Chart of The Day: CEXs’ Liquidity Drying up The bid/offer spread is the difference between an asset...This spread can be used as a measure of liquidity....A small spread indicates higher liquidity as there are more market participants, and a larger spread...The bid/offer spreads for BTC and ETH are widening to new highs.

Liquidity is spreading across layer 1s and 2s as multi-chain becomes the new norm.

The risk is spread volatility between entry and exit, not the spread itself....The spread cancels on a round-trip....Your normal trading cost (bid/ask spread + slippage + fees) is separate from the mark-to-underlying spread...IBKR: ~1.5 bps spread + ~0.2 bps fee. Excludes mark-to-underlying spread, which can cancel on round-trip...

This results in a spread between borrow and lending rates....It enables zero-spread loans by automatically matching lenders to borrowers wherever possible....Improved Borrow and Lending Rates As mentioned above, the spread between borrow and lending rates is...However, once the positive spreads between the rates return, Morpho will re-enable P2P matching.

...given point in time, which can be impacted by a variety of factors, such as: Order book and bid/ask spread...Tight bid-ask spreads High levels of trading activity – this can be indicative of participation, interest...Bid-ask spreads have, on average, continued to decline, reaching multi-year lows.

Over the last month, the bid-ask spread on BTC perps, particularly Deribit, has improved dramatically...The spread on Deribit went from 60 basis points to under 30 basis points....The spread reducing from 0.6% to 0.3% would save a trader close to $15,000 ([0.6%-0.3%]*$5 mn).

They make their money off the bid-ask spread on each trade....“Binance spreads, but with zero fees.”...Why not keep tight spreads and just charge normal (even high) fees?”...“Binance spreads, zero fees” is simple, verifiable, and shareable....Execution cost is not just spreads. Execution cost = spread + fees + slippage.

Trading Activity Takes a Dip Throughout November, we’ve seen Binance’s total spot volume stagnate while spreads...The reason for the daily high on this spread spiking on certain days is almost certainly a consequence...as lively, large orders cannot be filled as easily and incur more slippage, which causes the bid-ask spread...

...by offering free person-to-person payments, later monetizing through merchant checkout fees and FX spreads...FX and Conversion Spreads: Moving between USDT, local currencies, and other stablecoins creates natural...spreads that Plasma can capture through its integrated FX stack.

...at 9.36%, or supply USDT, earning 7.74% while borrowing at 9.68%.Note that USDC creates a positive spread...(earning more than you pay), while USDT creates a negative spread (paying more than you earn)....This creates a leveraged position where users earn the spread between Hyperion’s LP yields and Echelon...

All three protocols have no spread on BTC/ETH/AVAX, and a small spread on other long-tail assets....LPs pocket the spreads, adding an additional source of yield for them....But if we consider the total cost (trading fee + spread), swapping an asset on Mycelium is likely to...

Likewise, credit spreads probably would’ve widened even further and tighter funding markets (which companies...High-Yield Option-Adjusted Spreads (OAS) It’s Not Perfect…  ...

Aggregators provide users access to tighter NFT spreads and the ability to sort NFTs by traits and floor...listing program, users are encouraged to list NFTs at reasonable prices, resulting in tighter price spreads...Tighter price spreads mean traders and collectors receive optimal prices and a better experience overall...

The bid-ask spread for a $5M order in perp markets ranges from 0.1% to 0.5% (on bad days)....On this occasion, spreads for a $5M order momentarily rose as high as 2% on Binance, 4.2% on FTX, 4%...

...works on the technical level shortly; but it’s worth understanding that aside from offering tighter spreads...A searcher takes advantage of the price discrepancy, capturing the spread....The goal here is better execution: tighter spreads, reduced slippage, and latency-competitive fills,...Today Solana spot spreads are sub 1 bps, in many cases even tighter than Binance.

BTC Spread Widens As is usually the case with sudden collapses in market structure, liquidity on the...When one side of the orderbook gets exhausted and has few orders, the bid-ask spread widens.

Corporate Bond Spreads: CCC or Below vs....Attractive yield spreads and heightened demand for U.S. assets helped drive up Treasury bond returns...A steeper U.S. yield curve, typically measured by the spread between shorter-dated Treasury yields (<...Treasury Yield Spread vs. S&P 500 (Green) vs. U.S....Treasury 10yr-2yr Yield Spread vs.

...whether they’re capitalizing on cheaper options (specifically calls) to deploy delta hedged options spreads...

Aggregators provide novice and professional users access to tighter NFT spreads and the ability to sort...Users are encouraged to list NFTs at reasonable prices, which results in tighter spreads....Tighter spreads mean traders and collectors experience optimal prices.