Spread
Last reviewed 2026-08-07
Spread — definition
The gap between the best bid and best ask price on a market. Smaller spread = cheaper round-trip cost.
If YES is bid at 0.38 and offered at 0.42, the spread is 4¢. You pay it twice (once to enter, once to exit) if you cross the book.
On thin college markets, expect spreads of 2–10¢. On heavily-traded politics markets, spreads tighten to under a cent.
Learn more: How prediction markets work
See also
Frequently asked questions
What does spread mean in prediction markets?
The gap between the best bid and best ask price on a market. Smaller spread = cheaper round-trip cost.
How does spread work in practice?
If YES is bid at 0.38 and offered at 0.42, the spread is 4¢. You pay it twice (once to enter, once to exit) if you cross the book.
Sources & further reading
- CFTC — Event contracts explainedU.S. Commodity Futures Trading Commission
- Kalshi — how prices and settlement workKalshi
- UMA Optimistic Oracle documentationUMA Protocol
Last reviewed 2026-08-07 · CollegePredictionMarkets.com