The spread is the gap between what buyers are willing to pay and what sellers are asking. It is the quickest read you have on how healthy a market is.
Tight spread, healthy market
When YES and NO prices sit close together, plenty of people are trading and your order fills near the price you see. Cash-outs are also closer to fair value.
Wide spread, be careful
A wide gap usually means thin interest, an unusual event, or a market close to resolution. Your entry costs more, and cashing out early costs more too.
Practical habits
- Compare the spread to the size of the edge you think you have. A 3-point edge is wiped out by a 5-point spread.
- Avoid chasing a price that just jumped — wait for it to settle.
- On thin markets, size down. Getting out matters as much as getting in.