BTC$80,244▲ 3.3%ETH$2,420▲ 5.3%USDT$0.99930.0%SOL$96.40▲ 2.9%TON$1.20▲ 1.7%USD/₴ NBU45.54EUR/₴ NBU51.25Fear & Greed34FearData: NBU · Powered by CoinGecko · alternative.me
Skip to content
BasicEconomics1 min

A spread is the difference between a buying price and a selling price: for example, between the rate at which a bank buys currency and the rate at which it sells.

In plain words

At exchange offices and on exchanges the spread is a hidden charge for the service: the narrower it is, the better the deal. In transfers and conversion the spread can hide in the rate: with “0% commission” the rate may be worse than the market one. So compare the final amount, not only the fee, and treat the official NBU rate as a benchmark (it is not the rate at which you will be sold currency).

Example. A bank buys dollars at 40.10 and sells at 40.60: the difference of 0.50 hryvnia is the spread. If you buy a dollar and sell it straight away, you lose about 1.2% (0.50 / 40.60); the numbers are illustrative.

Related terms

← The whole glossary

Word of the dayInflationBasic

Inflation is a sustained rise in the general level of prices, so that money buys fewer goods and services than before.

Example. Prices rose 10% over the year and your deposit earned 8%: formally you earned something, but you can buy a little less with that money than last year (108 against 110, illustrative numbers).

Newsletter coming soon

We are about to launch the newsletter. For now, everything is here on the site.