Why isn't the spread always the same on Pluang?
The spread isn't always the same on Pluang because it comes from live market supply and demand, and four things shape it: how liquid the asset is, how volatile the market is at that moment, when you trade, and the size of your order. The spread is the gap between the best price buyers are offering and the best price sellers are asking, and that gap is never fixed. Liquid, widely traded assets usually have narrower spreads than thinly traded ones. Spreads widen when prices are moving fast or when trading is quiet, and narrow again when the market is active and calm. Order size matters too: a large order may need to be matched against several sellers or buyers at progressively less favourable prices, so its effective spread can be wider than a small order's. Crypto on Pluang uses a floating spread that varies with liquidity, volatility, market conditions and transaction volume, for both market orders and advanced orders. The prices shown before you confirm always reflect the spread at that moment.
The four factors
| Factor | Spread tends to be narrower when… | Spread tends to be wider when… |
|---|---|---|
| Liquidity of the asset | Many buyers and sellers trade it | Few participants trade it |
| Market volatility | Prices are calm and steady | Prices are moving fast, for example around major news |
| Time of trading | Market activity is high | Market activity is low |
| Size of your order | The order is small relative to what is on offer | The order is large enough to use up the best prices |
- The factors combine. A normally liquid asset can still show a wide spread during a sudden price swing, and a small order in a thinly traded asset can still face a wide spread.
- Each factor has its own article. For more detail, see the Pluang articles on why the spread can be larger on a large transaction, why the spread changes or widens, and whether the type of asset affects the spread.
Related questions:
Q: Is the spread the same when I buy and when I sell?
It is the same gap, crossed from opposite sides. When you buy, your order trades against the ask side, above the mid price; when you sell, it trades against the bid side, below it. Because the spread can change between the moment you buy and the moment you sell, the gap you cross on the way out may be narrower or wider than the one you crossed on the way in, depending on market conditions at the time.
Q: Can I see the spread before I trade?
Yes, in effect. The buy and sell prices shown in the app before you confirm a transaction already reflect the spread at that moment, so comparing the two tells you how wide it is. If you want to express it as a percentage, divide the difference between the buy and sell price by the price. Because the spread moves with the market, check the prices right before you confirm rather than relying on what you saw earlier.
Q: Does the floating spread apply to limit orders on crypto?
Yes. On Pluang, the floating spread for crypto applies to both market orders and advanced orders, such as limit and stop orders. What an advanced order changes is control over price: a limit order fills only at your chosen price or better, while a market order fills at the best price available. The spread itself still reflects the asset's liquidity, market volatility, market conditions and the transaction volume at the time the order fills.
Q: Is a wide spread a sign that something is wrong?
Not usually. A wide spread is a normal response to market conditions: fewer participants, fast-moving prices or a large order relative to what is on offer. It generally narrows again as activity returns or prices settle. What it does mean is that trading at that moment costs more, because the gap between buying and selling is larger. If the timing isn't urgent, it can be worth comparing the prices again once conditions change.