Entry, Exit and Now Spread Explained

A raw spread compares two prices but ignores what you can actually execute. Order book depth, bid/ask spread and the difference between exchanges all change the real cost. Execution spread turns the pretty percentage into a usable number.

• Raw spread often uses last price, not executable price.
• Depth and bid/ask decide what you really pay.
• Execution spread is what survives a real order.

Entry spread answers: how good or bad is opening both legs right now? If entry is unfavorable, the trade starts at a disadvantage that funding or convergence must overcome.

• Measures the cost of opening both legs at current prices.
• A bad entry means the trade starts behind.
• Compare entry against expected funding or convergence.

Exit spread answers: how good or bad is closing both legs right now? A good entry can still become a bad trade if the exit is expensive, so both numbers matter together.

• Measures the cost of closing both legs now.
• A cheap entry can be undone by an expensive exit.
• Plan the exit before you commit to the entry.

Now spread estimates an immediate open-and-close using current executable prices. It is not a prediction, it is a snapshot of market friction. A poor Now value warns that the visible opportunity may not survive execution.

• Now is the round-trip result at this instant.
• It reflects bid/ask, depth and the exchange difference.
• A negative Now means the visible edge is likely not real yet.