Why Traders Radically Underestimate the Bid Offer Spread (and What to Do About It)

Tue, 21 Apr 2026 12:57:29 +0000

**Why Traders Radically Underestimate the Bid Offer Spread (and What to Do About It)** Why are so more traders suddenly noticing the hidden cost embedded in every trade—hidden in the difference between bid and ask? Despite its quiet influence, the bid offer spread remains one of the most underappreciated forces shaping trading outcomes across markets. What once felt like a minor detail has moved to the center of attention, not just among experienced traders, but within mainstream financial discourse across the U.S. This growing awareness stems from changing market dynamics: tighter liquidity, digital transformation, and rising competition have pushed traders to rethink foundational concepts. Many still treat the spread as a passive fee, but reality shows it’s a powerful variable that directly impacts profitability and risk, especially in fast-moving or low-margin environments. #### The Shifting Mindset in US Markets