I'm sorry if this has been asked/answered before, but the search function on this forum blows.
This has been bugging me lately. Why do the spreads on currencies get so wide when news is released? I would assume that at times of a news release the currency experiences greater volume. In the stock world when a stock has an increase in volume the spread shrinks. At times there can even be a few seconds where the bid is higher than the ask if MM's can't keep up.
Why is that reversed in forex?
This has been bugging me lately. Why do the spreads on currencies get so wide when news is released? I would assume that at times of a news release the currency experiences greater volume. In the stock world when a stock has an increase in volume the spread shrinks. At times there can even be a few seconds where the bid is higher than the ask if MM's can't keep up.
Why is that reversed in forex?