The Advantages of a Large Speard?

Beginner Questions
1

Noob Question of the Day: Are there any advantages of a Large Spreads? (Excluding the Makers)

-What information is it telling us? Low volume? Market Uncertainty?

-How Can retail trader benefit (or Not benefit) from this information

-How does a broker benefit from this?

-Is this how you spell “arbitrage”?

Thanks in Advance, looking forward to your feedbacks!

2

Yes to arbitrage.

Spreads are indications of expected volatility and liquidity. Large spreads indicate a market where low liquidity and/or high volatility is expected.

Brokers don’t necessarily benefit from higher spreads as they indicate a higher cost of doing business (providing liquidity).