A financial spread is a financial term that describes the difference between the prices of two different investments. In essence, it is the cost of buying one investment and selling another. The spread is usually expressed in terms of percentage points, and it can be positive or negative. When a spread is positive, it means that the investment being sold is more expensive than the investment being bought. Conversely, when a spread is negative, it means that the investment being sold is cheaper than the investment being bought.