The spread is the small gap between the price at which you can buy an asset and the price at which you can sell it at the same moment. It's a cost you pay every time you trade.

With digital gold, you buy slightly above the market price and sell slightly below it; that difference goes to the platform. Because you pay it on the way in and the way out, frequent trading quietly eats your returns — which is exactly why gold is a hold-for-years asset, not something to trade weekly.

In Pakistan: spreads apply to digital gold, shares, and funds alike.

Example (PKR): if you can buy gold at Rs 435,500 and sell it instantly at Rs 434,500, the Rs 1,000 difference is the spread.

Don't confuse it with: a management fee (an ongoing annual charge) or capital gains tax (a tax on your profit).

Related terms: Digital gold · Mutual fund
Where you'll meet this: What is digital gold · Mutual funds vs stocks