Understanding Zero Spreads Trading

Overview

In crypto perpetual trading, cost efficiency and execution precision are key to consistent performance. While many traders focus on visible fees like maker-taker rates, one often-overlooked cost can quietly eat into profitability: the spread, the difference between the bid and ask price of a trading pair.

In Flipster, we’ve introduced Zero Spreads Trading, a system designed to remove this hidden cost through zero spreads and instant execution. This applies to perpetual contracts quoted in USDT and USD1, Flipster’s supported stablecoins. 

What Is the Bid/Ask Spread?

In every trading pair, there are two prices at any given moment:

• Bid Price – The highest price a buyer is willing to pay.

• Ask Price – The lowest price a seller is willing to accept.

The difference between the two is called the spread.

Spread = Ask Price – Bid Price

This spread is a real recurring cost, especially when you're trading frequently or in large sizes.

Example of How Spread Impacts Your Trade

Assuming that you're trading ETH/USDT (the same concept applies to ETH/USD1):

• Best Bid: 2,500 USDT

• Best Ask: 2,505 USDT

• Spread: 5 USDT

If you place a market buy order, you're buying at 2,505 USDT

This 5 USDT is an invisible cost you absorb when placing a market order, you buy slightly higher or sell slightly lower than the true market value. To break even, ETH needs to rise by 5 USDT just to cover the spread.

What Does “Zero Spreads” Mean?

When we say zero spreads, we mean that the bid and ask prices match exactly as per below:

Bid = Ask = Mid Price

Spread = 0.00%

This removes the invisible markup normally baked into trades. You’re executing at the real market price, with no gap between buyers and sellers.

Why Zero Spread Trading Matters?

1. Lower Trading Costs

With zero spread:

• There’s no hidden cost due to the difference in bid and ask prices
• Every entry and exit is closer to breakeven
• You only pay the taker trading fee (e.g., 0.05% at the Basic tier)

2. Transparent, Predictable Pricing

With traditional spreads, your breakeven point fluctuates. With zero spread on Flipster:

• You always know your exact entry and exit price
• Break-even and P&L calculations become simple and accurate
• You can focus on performance, not hidden costs

3. Precision in Fast-Moving Markets

In volatile markets, spreads can widen significantly. While looking at the mid-price in the trading chart, it may still be unclear on what the bid and ask prices are.

Zero spread reduces that risk and gives you:

• No second-guessing of the bid and ask prices
• Tighter and more effective stop-loss/take-profit setups
• Confidence during news events or sharp market swings

4. Capital Efficiency for High-Volume Traders

For traders dealing in large volumes:

• Even a small spread margin can eat into your order/position margin
• Zero spread, combined with volume-based fee discounts, maximizes efficiency
• You retain more profit on every high-leverage or high-size position

Example: Zero Spread in Action

Let’s say you're trading BNB/USDT:

Zero Spread Trading Pairs

As of launch, the following perpetual trading pairs on Flipster offer zero spreads. Contracts are available in both USDT-quoted and USD1-quoted versions (where applicable):

• XRPUSDT
• BNBUSDT
• SOLUSDT
• DOGEUSDT
• TRXUSDT
• ADAUSDT
• SUIUSDT
• LINKUSDT
• AVAXUSDT
• 1000PEPEUSDT
• LTCUSDT
• PAXGUSDT
• AAVEUSDT
• TRUMPUSDT
• TONUSDT
• ARBUSDT
• HYPEUSDT
• NEARUSDT
• DOTUSDT
• 1000SHIBUSDT
• FILUSDT

Important Notes

• Zero spreads remove the price gap, but trading fees still apply depending on your VIP tier.
• Your VIP level determines eligibility for lower fees and additional perks like higher open interest limits.
• Perpetual contracts are available in USDT and USD1, so you may choose the stablecoin that best suits your portfolio strategy.