I'm currently short on AUDCAD and I logged in to find that my position is supposedly down about 50 pips - which is surprising to me because the charts show that I should be in positive territory. I use MB Trading and the answer to this apparent drop lies in the bid/ask. Right now MB shows a bid for AUDCAD of 0.9140 and an ask of 0.9256. So I moved over to the Level II quotes and I see that there are a grand total of 10 lots at the bid and 11 lots at the ask.
I'm not tremendously worried about this because I assume that the bid/ask will tighten soon and my position will be fine, but how can any broker be showing such a ridiculous spread? I know that MB Trading charges rollover at 1700 EST, which tends to empty out a lot of orders from those who don't want to pay rollover, but this just seems beyond regular explanation.
Please note that this is not an MB-gripe. I'm generally quite happy with them and I know that they are an ECN provider so, in theory, they're just showing me whatever bids/asks are available in the market. Furthermore, the spreads that I usually see with them, while they do vary with the market conditions, are usually incredibly tight. But I just find it hard to believe that in a market like forex, which is always touted as having amazing liquidity, there can be such a gaping discrepancy in the spread at any time of the day.
I'm not tremendously worried about this because I assume that the bid/ask will tighten soon and my position will be fine, but how can any broker be showing such a ridiculous spread? I know that MB Trading charges rollover at 1700 EST, which tends to empty out a lot of orders from those who don't want to pay rollover, but this just seems beyond regular explanation.
Please note that this is not an MB-gripe. I'm generally quite happy with them and I know that they are an ECN provider so, in theory, they're just showing me whatever bids/asks are available in the market. Furthermore, the spreads that I usually see with them, while they do vary with the market conditions, are usually incredibly tight. But I just find it hard to believe that in a market like forex, which is always touted as having amazing liquidity, there can be such a gaping discrepancy in the spread at any time of the day.