I have noticed that some pairs have wider spreads than other for example GBPUSD, USDJPY,USDCHF and EURUSD generally have 4-5 pip spreads.
What i dont understand is why do pairs such as
1. GBPAUD, GBPCHF have a 15 pip spread
2. AUDCAD have a 10 pip spread.
Is there a rational explanation for this, for example some pairs are less volatile and as a result the broker charges a larger spread to make more money. But should that be the reason would that not discourage traders from trading that pair.
I really want to understand this, can any one help?
What i dont understand is why do pairs such as
1. GBPAUD, GBPCHF have a 15 pip spread
2. AUDCAD have a 10 pip spread.
Is there a rational explanation for this, for example some pairs are less volatile and as a result the broker charges a larger spread to make more money. But should that be the reason would that not discourage traders from trading that pair.
I really want to understand this, can any one help?