I currently trade with FXCM and have noticed that on several pairs, mainly the CHF, NZD, and some GBP crosses, that the spreads at the 5pm EST rollover will shoot to over 20 pips for a few minutes, then return to their normal 5 pips or so. The effect is, naturally, smaller on the more highly traded pairs.
I understand that this time of day is generally low volume as Asia hasn’t come on yet, so I would expect the spreads to be a bit higher around this time, but I’m talking about a large spike every day for just a few minutes, right at this time. Having been burned by these spread spikes in the past, I’ve resorted to actually moving my Stops manually for any trades that are within 25 pips of their stops, just until the spread goes back to normal, then moving the stops back. Naturally, I have to be at my computer at Rollover time to do this, so it’s a bit of a pain.
Is this something that happens on all platforms, or is FXCM up to something here?
Thanks.
I understand that this time of day is generally low volume as Asia hasn’t come on yet, so I would expect the spreads to be a bit higher around this time, but I’m talking about a large spike every day for just a few minutes, right at this time. Having been burned by these spread spikes in the past, I’ve resorted to actually moving my Stops manually for any trades that are within 25 pips of their stops, just until the spread goes back to normal, then moving the stops back. Naturally, I have to be at my computer at Rollover time to do this, so it’s a bit of a pain.
Is this something that happens on all platforms, or is FXCM up to something here?
Thanks.