Ninjastic
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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
BitUsher
on 03/11/2015, 14:59:32 UTC
Quote from: Asrael999 on November 03, 2015, 02:46:18 PM
Quote from: BitUsher on November 03, 2015, 02:32:27 PM
Quote from: Patel on November 03, 2015, 02:18:31 PM
Down to $25 spread now  Smiley

I apologize for being anal retentive, but I keep hearing people use the term "spread" to refer to the price "premium" between exchanges. I thought that traders used the term "spread" to refer to the buy and sell price difference within the same exchange and the price difference between exchanges as the "premium"... thus the price premium of Chinese exchanges is 25 dollars higher than US exchanges.

...or is there something I am missing?

Spread is the price between two things - it can be applied to many things,   eg treasuries vs corporate bond is the Spread to Treasuries, spread between Live Pigs and Pork Bellies is "The Dead Spread",
Premium is the price above market or additional cost one has to pay, eg new issue premium is the extra amount an issuer pays above existing stock to issue more.
Both could probably be used , the Spread between Houbi and Stamp is X, The Houbi premium is Y or the BTCE discount is Z

I suppose some people are using the term spread in a more generic sense (but correct ) where most professional currency investors always refer to it in a very narrow case. -- http://www.investopedia.com/terms/s/spread.asp which is leading to a bit of the confusion?