> ## Documentation Index
> Fetch the complete documentation index at: https://docs-polymarket-us.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Spreads

> Learn how the gap between bid and ask affects your execution price

Every market has two prices:

* The **bid** is the highest price buyers are willing to pay
* The **ask** is the lowest price sellers are willing to accept

The **spread** is the gap between these two prices. A wider gap means you may pay more when buying or receive less when selling.

## How It Works

1. When you buy, you pay the **ask** price.
2. When you sell, you receive the **bid** price.
3. The difference between them is the **spread**.
4. Tighter spreads mean better execution.
5. Wider spreads mean higher trading cost.

**Tight spread:** A tight spread means the bid and ask are close together, common in more liquid markets.

**Wide spread:** A wide spread means the bid and ask are far apart, common in less liquid markets.

## Key Points

* You buy at the **ask** and sell at the **bid**
* The spread is the gap between these two prices
* Wider spreads increase your trading cost
* More liquid markets usually have tighter spreads
* Your execution price depends on the bid, the ask, and the available size