Disliked{quote} Don't entertain a guess! You said you read about how the market operates, so you should bloody know the answer definitively. The spreads widen because no one is bidding or offering at the prices between the spread. That's what the bid and ask IS. They aren't some magic number the broker individually makes-up and prints for you just to fuck with you, apart from any small mark-up they put on the numbers so that they shave some profit before passing your shitty trades on to their liquidity provider, assuming they consider it worth their time...Ignored
"Market-maker spreads widen during volatile market periods because of the increased risk of loss. The wider spreads are a way to dissuade investors from trading duA two-way price quotation that indicates the best price at which a security can be sold and bought at a given point in time.The bid price represents the maximum price that a buyer or buyers are willing to pay for a security. The ask price represents the minimum price that a seller or sellers are willing to receive for the security. A trade or transaction occurs when the buyer and seller agree on a price for the security.
"The difference between the bid and asked prices, or the spread, is a key indicator of the liquidity of the asset - generally speaking, the smaller the spread, the better the liquidity"
http://www.investopedia.com/terms/b/bid-and-asked.asp
http://www.investopedia.com/terms/m/...akerspread.asp
http://www.forexfactory.com/showthread.php?t=7484
http://www.yourtradingcoach.com/Arti...-About-It.html
before you get all "persnickety" ass, with me DO YOUR HOMEWORK. I can guarantee you this, I've already done mine...........
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Markets are not efficient, rather they are effective - Jones