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Margin here means what you actually keep: the sell price, minus the 2% Grand Exchange tax on that sale, minus what you paid to buy. Most sites show the raw spread between buy and sell, which overstates every margin on the board and overstates them most on expensive items. On a 100m item the raw spread is 2m coins too optimistic, because the tax takes 2m of it before you see a coin.
The tax is capped at 5m coins per item and is not charged at all on a short list of exempt items, so the relationship between spread and profit is not a flat percentage. This page applies the same tax rules the game does.
A wide margin is not automatically a good flip. Items with the widest spreads are often the ones that trade least, meaning your buy or your sell may sit unfilled for hours. Read the margin alongside the daily volume column, and treat anything with an unusually large margin relative to its price as a stale quote until the volume says otherwise.
