The buy-sell spread on currencies: what it is and how it is calculated
The spread is the gap between a currency's selling price and its buying price. Buy a currency and sell it straight back, and that gap is exactly what you lose.
Whose prices are buy and sell?
- Buy: the price at which the institution buys the currency from you. The lira you get when you sell your currency is calculated at this price.
- Sell: the price at which the institution sells the currency to you. The lira you pay when you buy currency is calculated at this price.
The selling price is above the buying price; the difference is what the institution earns on the trade.
How is it calculated?
Spread = sell − buy. As a percentage: (sell − buy) ÷ sell × 100. The spread percentage on our site uses this formula, relative to the selling price.
An example (not a real rate): buy 9.90 TL, sell 10.00 TL. The spread is 0.10 TL, or 1%. Someone who buys 100 units and sells them straight back pays 1,000 TL and gets 990 TL back; the difference is 10 TL.
Why does the spread change?
- Institution and channel: every bank, exchange office and app sets its own prices; the same bank can price a branch, its app and banknotes differently.
- Banknotes or account: the spread on banknotes is usually wider (banknote vs forex rate).
- Time and day: while the market is closed prices do not update, and some institutions widen their spread then (weekend rates).
- Currency: thinly traded currencies usually have wider spreads than heavily traded ones.
On our pages
Every currency page shows the free market's buy and sell, its spread and its source, with the CBRT's rate for the same currency to compare. The currency converter prints buy and sell separately.
More currency guides
This content is for information only; it is not investment advice.