How Bid-Ask Spread Affects Futures Execution

The bid-ask spread is the difference between the highest displayed bid and the lowest displayed ask.

When the spread widens, immediate execution can become more expensive.

For active futures traders, even small execution costs can accumulate across many trades.

That is why I consider the spread alongside volatility, available liquidity, and the type of order I'm using.

A strategy can look attractive on a chart but perform differently after realistic execution costs are included.

Execution quality deserves a place in every serious strategy review.