Spread

The difference between the bid and offer prices of a given asset or instrument. Term also used to refer to the interest rate component, defined by the credit institution, contract by contract, when granting variable-rate financing. The spread is added to the reference rate and varies, namely, according to the credit institution's own funding costs on the interbank market, the customer's credit risk and the loan-to-value of the loan.

Source: Glossary of Banco de Portugal, letter S (consulted on 2022-06-28)