What is 'spread' in SAP FIN-FSCM-TRM-TM - Transaction Manager?

spread - Overview

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: The difference between the bid rate and the ask rate. Spread is used as a markup of a reference interest rate for interest rate-dependent derivative financial transactions, in connection with the credit standing of a debtor.

spread - Details

• 
  Key Concepts: 
  Spread is a term used in SAP Transaction Manager (FIN-FSCM-TRM-TM) to refer to the difference between the buying and selling rate of a currency. It is calculated by subtracting the buying rate from the selling rate. The spread is used to measure the profitability of a transaction.
  
  How to use it: 
  In SAP Transaction Manager, the spread can be used to determine the profitability of a transaction. To calculate the spread, subtract the buying rate from the selling rate. This will give you the difference between the two rates, which is known as the spread. 
  
  Tips & Tricks: 
  When calculating the spread, it is important to remember that it is calculated by subtracting the buying rate from the selling rate. This will give you an accurate measure of profitability for a transaction. 
  
  Related Information: 
  The spread can also be used to compare different currencies and determine which one is more profitable for a given transaction. Additionally, it can be used to compare different transactions and determine which one is more profitable.