Spread

Worked example

If a YES market has a best bid of 40¢ and a best ask of 46¢, the spread is 6¢ (0.40 − 0.46 in dollars). This 6¢ gap represents the current cost to cross the book from bid to ask on that side.

FAQ

What is spread in Kalshi markets?

Spread is the gap between the best bid and best ask for a contract side (YES or NO). It indicates the immediate liquidity and execution cost to buy or sell at the top-of-book prices.

How does spread affect arbitrage opportunities?

A smaller spread means cheaper entry for one side; if you can buy both sides cheaply when the combined prices are below $1.00, you can lock in a risk-defined edge. Larger spreads raise potential slippage and reduce edge.

How is spread calculated?

Spread = best ask price minus best bid price on the same contract side. Prices are quoted in cents (0.01 to 0.99).

Related terms

• Open Interest
  Total number of unsettled Kalshi contracts across YES/NO in a market.
• 24H Volume
  Total number of contracts traded in the last 24 hours for a market.
• Liquidity
  Liquidity is the ease of buying or selling a contract without moving the price much.
• Slippage
  The difference between expected execution price and the actual fill price after placing an order.
• Fill-or-Kill Order
  An order that must be fully filled immediately or cancelled in its entirety.
• Limit Order
  An order to buy or sell at a specified price or better, not at market.