why does oanda do this?

I know the market starts at around 5pm EST. And Oanda's bid/ask for some pairs have already moved. But why is the spread still reading the weekend rates??!(10-20pips). Shouldn't they lower it as soon as the market opens and not a few hours afterwards, when the market has made like 10-20 pip move.

sigh...

It is disadvantage of non-fixed spred, but 7 pips difference from standart 3 pips spread is not so big.

it will change at about 7pm est.

Because NZ and Austraila are very light volume. It's not until around 8 or 9 EST and well into the Tokyo session do you see spreads being normalized...

When there's low liquidity, then the banks can't offer competitive spreads..

Oanda's trying to tell you to stay out and don't play yet because you are gambling if you try to put in any position at first hour of opening. Also, I think Oanda open later than most brokers.

No. Oanda is the only (that I know of) broker that offers true 24 hour 7 day a week, 365 days a year trading.

Oanda is artificially keeping spreads wide for about 2 hours longer on Sunday evening than is warranted by available liquidity offered by the major worldwide banks. The currency futures markets open at 6PM Eastern time and major world banks start quoting at or before that time. The only answer as to why Oanda doesn't reduce the spread to match the available liquidity during that two-hour block (6PM-8PM Eastern time) in my opinion is excessive profiteering by Oanda.

Oanda also expands their spread just before heavy news. I guess it just doesnt bother me. I have a toe in the water most of the time.

So just dont trade when the spread is large.


Lou