# Dynamic Limit Spread

<figure><img src="/files/QrPBzFmebDhGlEEVLtBD" alt="Dynamic Limit Spread Setting"><figcaption></figcaption></figure>

The **Dynamic Limit Spread** is an **optional setting** that allows traders to define the **minimum price difference (spread)** required between the **buy and sell legs** before executing a trade. This ensures that **spread or basis trades** only execute when the **price differential aligns with the trader’s profitability criteria**.

**How It Works**

* Traders set a **minimum spread threshold** for execution.
* If the market spread is **too narrow**, the system **pauses execution** until the price difference meets or exceeds the defined threshold.
* This prevents trades from being executed **at unprofitable spreads**, ensuring **favorable pricing** for spread and basis strategies.

**When to Use This Setting**

* **Spread Trading** – Ensures that **buy and sell legs** of a trade execute **only when the spread is sufficient**.
* **Basis Trades** – Helps traders avoid executing **futures vs. spot trades** at an unprofitable basis.
* **Controlled Arbitrage** – Allows traders to **lock in profits** by only executing **when the price difference justifies the trade**.

This feature is useful for traders looking to **optimize trade execution** by ensuring that **spreads meet profitability requirements before execution**.


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