I just started buying some crypto on Bux, with 1000+ bux tokens. But despite not paying commission I start every position in the minus with 2%. Not sure how this works once selling, but if that repeats on the selling side, I’d be in a substantial loss before I even started.
What’s up with this?
Hi @roggers1985 there is always a spread between the bid and the ask price of financial instruments and cryptocurrencies. When you send in a buy order you will buy at the ask price. The ask price indicates the price for which the market is willing to sell. The bid price is the price at which you would trade if you would send in a sell order at that moment to the market, so the price that the best buyer wants to pay for it. Your position can show an initial loss as the portfolio is based on the bid price, whereas you bought it for the ask price. This way we make sure you will always see the amount you would get if you sold your current position.
While that is a very good technical explanation I’m curios why the spread is an (indeed) enormous 2%, that seems like a lot compared to stocks.