Glossary entry

Spread

The spread is the gap between the price at which a provider will buy a currency and the price at which it will sell it. Crossing the spread is one of the main ways exchange costs arise, and you cross it again when you convert leftover money back, which is why many travelers exchange only what they expect to need. The midpoint of the spread is roughly the mid-market rate. At a counter you may see two rates for the same currency, a buy rate and a sell rate. See also: margin, mid-market rate, leftover cash, and the guide How to Exchange Yen.