Define “too much”? The spread is whatever another entity is willing to accept to trade with you and, almost by definition, it is exactly the correct amount.
It’s not about being “correct”. It’s just that if it’s really wide, it might not even be worth it.
Define “too much”? The spread is whatever another entity is willing to accept to trade with you and, almost by definition, it is exactly the correct amount.
It’s not about being “correct”. It’s just that if it’s really wide, it might not even be worth it.