How big can spread widen at NY Close? | Forex Factory

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How big can spread widen at NY Close?

  • #1
  • First Post: Apr 23, 2021 6:45am Apr 23, 2021 6:45am
Dear traders,

Want to seek your advice whether it is normal for spread to be 23 pips wide for EURCHF during the handover from NY Close to Asian Opening around 00:15 such that stop loss placed far away can also be hit?

Thank you.
  • #2
  • Apr 23, 2021 6:58am Apr 23, 2021 6:58am
Spread can easily hit 23 pips at rollover. Double that to get an idea of where to place your stoploss.
  • #3
  • Apr 23, 2021 7:08am Apr 23, 2021 7:08am
Quoting kennyhubbard
Spread can easily hit 23 pips at rollover. Double that to get an idea of where to place your stoploss.

Hi Kenny

Thanks for sharing. Was thinking it was my broker's issue, thanks for letting me know it is normal. Would placing stop loss at 50 pips be safe enough for rollover during weekdays, not weekend?
Regards
  • #4
  • Apr 23, 2021 7:24am Apr 23, 2021 7:24am
Hi eess,

I would not go as far as saying it's safe because bad things can happen but on average it should be ok.

You can google for a site called forexbenchmark. They have have a history of spreads at various brokers and you can compare.
  • #5
  • Apr 23, 2021 7:30am Apr 23, 2021 7:30am
Quoting kennyhubbard
Hi eess, I would not go as far as saying it's safe because bad things can happen but on average it should be ok. You can google for a site called forexbenchmark. They have have a history of spreads at various brokers and you can compare.

Thank you very much Kenny for the helpful info!
  • #6
  • Apr 23, 2021 8:06am Apr 23, 2021 8:06am
I seen 19pip spread on AUDUSD at NY Close
  • #7
  • Apr 23, 2021 10:10pm Apr 23, 2021 10:10pm
Quoting SWGamer
I seen 19pip spread on AUDUSD at NY Close

Thanks for sharing!
  • #8
  • Apr 25, 2021 9:04am Apr 25, 2021 9:04am
Quoting eess
{quote} Thanks for sharing!
NP. This was on roboforex it depends on the broker. So do your own analysis on your own broker.
  • #9
  • Apr 25, 2021 12:50pm Apr 25, 2021 12:50pm
Quoting eess
Dear traders, Want to seek your advice whether it is normal for spread to be 23 pips wide for EURCHF during the handover from NY Close to Asian Opening around 00:15 such that stop loss placed far away can also be hit? Thank you.
It depends on how often it happens. If you start to lose consistenly because of that clearly it's a reason to stop. In my broker such spread widening is rare, however it happens.
  • #10
  • Apr 25, 2021 9:03pm Apr 25, 2021 9:03pm
Quoting murcott
{quote} It depends on how often it happens. If you start to lose consistenly because of that clearly it's a reason to stop. In my broker such spread widening is rare, however it happens.

Yes I'm monitoring this also. Thank you for sharing your experience.
  • #11
  • May 24, 2021 9:53am May 24, 2021 9:53am
Quoting eess
{quote} Yes I'm monitoring this also. Thank you for sharing your experience.
Hi eess.

I too confirm the widening of spreads when switching from the American to the Asian market.
The following images are from November 2020 and refer to two different Brokers (results side by side).
At the time of switching:
Attached Image (click to enlarge)
Click to Enlarge Name: Hour 17-00 EST.png Size: 112 KB

After 6 minutes:
Attached Image (click to enlarge)
Click to Enlarge Name: Hour 17-06 EST.png Size: 118 KB

This in the week.

Tonight I checked the spreads of a Broker that I reactivated yesterday for testing.
Unfortunately I didn't make a copy of the data, but I remember very well that the results fluctuated between 20 and 45 pips
BEFORE OPENING (with markets still closed).
This is due to the fact of the weekly closing and the fact that this Broker integrates the cost of commissions into the spread.
As a result, the spread is much higher than normal.

Finally:
In the past (even with Brokers with low spreads) I have hit SL by 50 pips.
Unfortunately carrying on the day after/week after your operations, requires much larger SLs, with the real risk of exaggerated losses.
Good continuation
I've seen things you people wouldn't believe
  • #12
  • May 24, 2021 9:57am May 24, 2021 9:57am
I've seen it hit as high as 65 pips on Global prime some some crosses. Like GBP/NZD etc.
  • #13
  • May 24, 2021 10:08am May 24, 2021 10:08am
Thank you! Ever since my stop loss was hit by the widening spread during end of day turnover, nowadays I tried not to leave my position overnight, really hard to predict how big the spread can become.
  • #15
  • Oct 10, 2021 8:04am Oct 10, 2021 8:04am
Quoting eess
Thank you! Ever since my stop loss was hit by the widening spread during end of day turnover, nowadays I tried not to leave my position overnight, really hard to predict how big the spread can become.
I have learnt that lesson of leaving orders overnight too, once successful session with +200 (I trade less then 0.1 lot) sudden shrunk to a meagre less than 50, +30 then disminished to -side even, you just looked on with horror ... how you then have the heart to close those orders to protect profit.

I dont believe in general small tight SL, so try to close all orders at least one hour before NY close, but sometimes market not allows that way

Basically I think safe only if trading from 600 GMT to 1800 GMT, mainly asian's end+changeover, and London and NY session you are safe, as many pairs of traders's eyes, many brokers datas available, for price spread, you can use for compare. But even there at time of news big differences between brokers could still appear, I seems it is your duty to keep eye open to check and make a case, their right to cheat you all to end

If you need to keep one order over night, count it as Swing trading, our acc must sufficient large, and SL must be accordingly large.

Also If you had argument with your broker, on that day you must collect logs, journal, screen shots, +srceen shot of what happened && of other broker server data on price too as legitim proofs (i.e from tradingview, there is certain limit data you can reach back only. i.e today you can not check H1 chart before 8/Sep/2021), because some brokers often prolonging discussed case/conversation over 1 month then 2, then there is no way you can get to an other available evidence to counter the broker's argument that everything was normal, only trader's fault trader lost
  • #16
  • Oct 10, 2021 8:08am Oct 10, 2021 8:08am
Quoting ntk
{quote} I have learnt that lesson of leaving orders overnight too, once successful session with +200 (I trade less then 0.1 lot) sudden shrunk to a meagre less than 50, +30 then disminished to -side even, you just looked on with horror ... how you then have the heart to close those orders to protect profit. I dont believe in general small tight SL, so try to close all orders at least one hour before NY close, but sometimes market not allows that way Basically I think safe only if trading from 600 GMT to 1800 GMT, mainly asian's end+changeover, and...

Thank you for sharing your valuable advice with me =)
  • #17
  • Oct 19, 2021 12:27pm Oct 19, 2021 12:27pm
Inserted Code
[b]"[/b] Thank you for your reply. Please bear in mind that the currencies pegged to NZD are less liquid due to the rollover of the New Zealand Dollar at 22:00 server time, hence more volatility can be observed during this time. Which can cause [url="https://www.forexfactory.com/brokers#spreads"]spreads[/url] ([url]https://www.forexfactory.com/brokers#spreads[/url]) to widen. We understand your frustration, however our spreads are variable and change all the time. As such, it is normal for spreads to widen at times, especially during times of high volatility. There is no limit how much spreads can widen. We remain at your disposal. Kind Regards,



In FX trading we learn new thing each day, not only TA, but strategy, MM and about broker, but I never expect to learn this

I have had recently my positions in locked hedge and a new order open smaller size to test the direction I thought market would go. A 22:01GMT, market re-open, a broker widen spread to 16.2 pips, so the smaller order incurred a smaller loss, margin still can cover, but the broker reasoning with the widen spread the lost calculated what larger about +41x, so they separated my locked position, then called margin in consequence on all three positions, the largest minus then the in-profit cover position, and the small test position!


From a usual spread of 3 points for NU, is the broker allowed to increased to 16.2 pips to cause so much loss to a trader at all? 16.2 pips compared to 3 points is 540x not just +41x

Since the data I newly learnt is so adamant, I started to suspect, a lot of my losses by margin call could happen this way how far back can I request them to provide data for further investigation, and how should I do next?

I was registered with them in Australia, but about 7 months ago to keep leverage higher then 1:30 ESMAs rule, I let by them move to Seychelles, so if I complain now to a finance Conformance body, which one? How? Do you have any idea?

If more information is required I can post the e-mail messages, and also the broker name or you to check, and be aware of their tactic.

They are so bold and have a straight face to call "any spread fluctuation is possible", and required me to re-read my contract when I joined them

If they have free reign to do such a thing they could get everyone if you you hold, you swing, you scalp, trading range or trading break out, with this widening spread they get everyone
  • #18
  • Last Post: Sep 23, 2022 3:42am Sep 23, 2022 3:42am
Quoting kennyhubbard
You can google for a site called forexbenchmark. They have have a history of spreads at various brokers and you can compare.
I am using an indicator that can compare spreads of different brokers on the same chart.
Attached Image (click to enlarge)
Click to Enlarge Name: SpreadSymbol1.png Size: 27 KB
See attached gif-animation (click on the image).

You can see a lot of interesting information. For example, expanding the spread by a scheduled broker!
Attached Image (click to enlarge)
Click to Enlarge Name: Spread4.png Size: 23 KB
You can take into account the commission if desired.

This spread indicator is very helpful in identifying broker scams and finding good conditions for scalping.
Attached File(s)
File Type: ex5 SpreadSymbol.ex5   30 KB | 141 downloads
Attached Image (click to enlarge)
Click to Enlarge Name: Spread2.gif Size: 1.7 MB
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