What is the price spread?

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The platform operates like a traditional bond market based on a request for quote system.

Quotes are taken from the market to get a consensus bid and ask (also known as offer price). The difference between the bid and ask price is known as the price spread.

The spread profit represents the profit the platform operating makes for offering the secondary market liquidity and it compensates for the risk of market-making.

The spread profit is defined by the difference between the market bid and market offer prices. An additional spread may apply at the platform level for each Offering to reflect the fractionalisation basis of making an Offering available in smaller lots.

Posted in Institutions, Staff.