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Oanda users - Oanda widening spreads 62 replies

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Attachments: Oanda just lower their spreads!!
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Oanda just lower their spreads!!

Quoting SeekingLight
... But uh, doesn't Oanda carry NZDJPY? Can't find it..
Nope. Nice rate though:

NZD/JPY - Long 7.000% Short -8.050%
Maybe a contributing factor for SeekingLight was a stop loss that was too tight?
Hey guys I have been working on a little something something and been mirroring all my trades on Oanda and I have to say on the retail side you cant ask for anything better. Around the news the spread are def wider but I dare you to put a mkt order in on CNX and see where you get filled. The only major diff is you can't get hit on bid/offer and don't for see any retail broker ever allowing this so unless you ready to put up the cash to maintain and institutional account I don't think there is much more to talk about.
Quoting dimmi
Oanda spreads vs Currenex at time of news

Oanda
GBP/USD = 25
GBP/JPY = 25

Currenex
GBP/USD = 1
GBP/JPY= 2
do and avi screen shot cause you and I both no CNX is moving so fast that you can see the spreads ever higher than that at times of new. The different platforms like CNX, Hotspotfxi sell them self on being able to get hit on the bid/offer and speed of the execution. Oanda just can not handle the speed at that time there for the higher spread.

It comes down to you get what you pay for.
Well Moe and other's,
I went with ODL about 3 months ago (thanks to MOE ) and man they are really good, i did a long post on what i had to go through ( so demo to live know what has to be done ) and said all thats happened with them so far, all good.
At the very least, Oanda is honest... the spreads are right there on the screen !!!

And if your trading depends so much on hitting the tade button so fast at news time... are you really winning that often ??? Trading the news must be very stressful and awfully risky...

Lots of pips to be made the easy way !!!
Quoting Tiki Trader
And if your trading depends so much on hitting the tade button so fast at news time... are you really winning that often ??? Trading the news must be very stressful and awfully risky...

Lots of pips to be made the easy way !!!

As for my case, my trading doesn't. I stopped attempting newstrades about 3-5 months after I started. Takes a bit to grow brains initially, but you wake up sometime.

No, my dilemma is more in say shorting a xxxJPY pair with a set stop and then having that taken out by 5-10 pips thanks to a temporary spread widening of 40-50 pips for a minute or three and then see things settle back down again nicely. Most of the time the spread is added to the "top" (er, I think that's Ask price, the one for buying and the stops on a short...)
and that definitely doesn't help me there

This is with a stop outside of a range that on any other charting I have never gets visibly touched yet Oanda spikes you out of thanks to their newsspread spike. Happened once or twice so far, been lucky the last week however.
It's a bit annoying having to tippytoe around your entries and stop placements when usually they'd be well chosen in an "un-widened" condition, but I guess there's just no perfect broker..
Trust price. Know yourself.
Quoting SeekingLight
... Most of the time the spread is added to the "top" (er, I think that's Ask price, the one for buying and the stops on a short...) ...
Are you implying your trades have tailored spreads depending on the position?
You should try monitoring the bid and ask price detail using the platform's price overlay studies instead of the min/max.
Are you awake during these news time events you mention? If so, sounds like the easist solution is to move your stop, or take it off so you don't get taken out like that.



Quoting SeekingLight
As for my case, my trading doesn't. I stopped attempting newstrades about 3-5 months after I started. Takes a bit to grow brains initially, but you wake up sometime.

No, my dilemma is more in say shorting a xxxJPY pair with a set stop and then having that taken out by 5-10 pips thanks to a temporary spread widening of 40-50 pips for a minute or three and then see things settle back down again nicely. Most of the time the spread is added to the "top" (er, I think that's Ask price, the one for buying and the stops on a short...)
and that definitely doesn't help me there

This is with a stop outside of a range that on any other charting I have never gets visibly touched yet Oanda spikes you out of thanks to their newsspread spike. Happened once or twice so far, been lucky the last week however.
It's a bit annoying having to tippytoe around your entries and stop placements when usually they'd be well chosen in an "un-widened" condition, but I guess there's just no perfect broker..
Quoting SeekingLight
As for my case, my trading doesn't. I stopped attempting newstrades about 3-5 months after I started. Takes a bit to grow brains initially, but you wake up sometime.

No, my dilemma is more in say shorting a xxxJPY pair with a set stop and then having that taken out by 5-10 pips thanks to a temporary spread widening of 40-50 pips for a minute or three and then see things settle back down again nicely. Most of the time the spread is added to the "top" (er, I think that's Ask price, the one for buying and the stops on a short...)
and that definitely doesn't help me there

This is with a stop outside of a range that on any other charting I have never gets visibly touched yet Oanda spikes you out of thanks to their newsspread spike. Happened once or twice so far, been lucky the last week however.
It's a bit annoying having to tippytoe around your entries and stop placements when usually they'd be well chosen in an "un-widened" condition, but I guess there's just no perfect broker..
Hi SeekingLight,

I experienced your problem too and the widening stops is really a hassle. See my recent thread here "Pretty interesting BID/ASK MECHANISM during news-Another trick(dirty?) to take money?" I believe some brokers to take advantage by the widened stops. Let me know your thoughts if you have opinions.
http://www.forexfactory.com/showthread.php?t=33112

I am now looking for a broker that don't widen stops or don't widen by too much during news. See my thread here "Looking for brokers that like to REQUOTE/FREEZE their platform "
http://www.forexfactory.com/showthread.php?t=33117

If you have some info or have some good suggestion please let me know or let's discuss.
Quoting bugscoe
Are you awake during these news time events you mention? If so, sounds like the easist solution is to move your stop, or take it off so you don't get taken out like that.
The problem with moving your stops or taking it off is that if the news turned out to be against you, you have to take the extra loss. Say, if you move your SL 20 pips farther away, but the news turned out to cause the price to spike by 50 pips, you would have to incur an extra 20 pips loss as you got stopped out anyway, moving stops or not. If the news favour your original direction, but if you don't move your stops and got spiked out because of the widening spreads, you then find it very frustrating to realize the news favour your original direction (while a fixed spreads broker didn't spike you out - but probably they froze their plaform to prevent people from entering. but at least it protects the posistions of clients that have positions in hand.)

Also, moving stop, removing it for a while (risky), or liquidate the position first before news all void the validity of backtest if you have have done some thorough backtests that prove to be profitable as news are already taken into account (what appeared in the graphs already take account of movement by news). The hassle here is the widening spreads.
Quoting forex778
... Also, moving stop, removing it for a while (risky), ...
If you're willing to hold a position through a major news release aren't you already sure of the direction? If not, perhaps reacting to the news once the spreads re-narrowed would be a better strategy. The stop is adding risk on top of the event risk no matter where its at. The release time of the news should be considered before the entry to avoid a need to liquidate. If the probability of the target being reached prior is in doubt, then its not a valid entry point. Here's what oanda says about it:
Quote
Some brokers try to simplify things by offering constant spreads and guaranteeing no slippage. That's fine. But there is no such thing as a free lunch. With a bit of investigating you can find out who's paying for this "guarantee".
Quoting SeekingLight
No, my dilemma is more in say shorting a xxxJPY pair with a set stop and then having that taken out by 5-10 pips thanks to a temporary spread widening of 40-50 pips for a minute or three and then see things settle back down again nicely. Most of the time the spread is added to the "top" (er, I think that's Ask price, the one for buying and the stops on a short...)
and that definitely doesn't help me there
..
SeekingLight,

I know exactly what your talking about and this is the issue w/ variable spread brokers because your still just able to buy/sell and not bid & offer. I have been mirroring all my trades on Oanda and waiting to see if this happens or not. So for example if you where short @ 163.00 w/ stop 163.30 if the spread went 30pips you would get stopped out. Where on CNX on a short the stop is off the bid so if the spread goes wide you don't get bumped out.

So what I'm trying to figure is ODL retail better w/ its fixed spread or Oanda w/ it variable spreads. Lucky for me I don't have to trade on either one but I would like to know what retail platform I can get the closest results to my trades w/ CNX.
  • Post #54
  • Quote
  • Edited 8:07pm Jun 11, 2007 4:50am | Edited 8:07pm
Quoting technamental
If you're willing to hold a position through a major news release aren't you already sure of the direction? If not, perhaps reacting to the news once the spreads re-narrowed would be a better strategy. The stop is adding risk on top of the event risk no matter where its at. The release time of the news should be considered before the entry to avoid a need to liquidate. If the probability of the target being reached prior is in doubt, then its not a valid entry point. Here's what oanda says about it:
Many people do reseach based on backtest. If your rules of backtest are solid and reliable and showed consistent positive result, then they are pretty sound and at least you can have some confidence to trade according to the rules of the backtest. And for backtests, for most of them news are already factored into the equation (backtest). If someone does a backtest for a period of 3 years, they don't go back and check what news are being released everyday or at certain times (unless their rules are news related, but many backtesters use techincal indicators/signals). They just enter and exit positions according to the rules of the backtests (e.g. when certain candlestick pattern is forming, MA crossover). If you move your stop or liquidate the positions just before news, then you void your backtest result. I am not saying you shouldn't liquidate or move your stop just before news, but that depends on whether you are a mechanical trader or a discretionary trader. If you are a mechincal trader then those widened stops can bother you as explained above.
Quoting forex778
... They just enter and exit positions according to the rules of the backtests (e.g. when certain candlestick pattern is forming, MA crossover). If you move your stop or liquidate the positions just before news, then you void your backtest result. I am not saying you shouldn't liquidate or move your stop just before news, but that depends on whether you are a mechanical trader or a discretionary trader. If you are a mechincal trader then those widerned stops can bother you as explained above.
I see... I guess that makes me a stopless mechanical trader.
I have been trading with Oanda for about a year now, 6 - 8 month trading technicals. I use a 4hr chart and never concern myself with news releases. So spreads do not matter much at all. The only time the spreads bother me is when I make the stupid mistake of not checking the spread before I place a trade. Two weeks ago I did this around 3:40PM EST on Friday, lapse of focus I suppose. I also placed a trade on AUD/USD about 5 minutes after a trade balance report and found myself paying 3x the normal spread ... gotta check those things first.

In regards to the discussion ongoing, if you use a 30min chart or something smaller, news releases you probably want to babysit to alter your SL. This could make the spread issue quite annoying. I would suggest using a broker like MB Trading in this case, or perhaps have a small account open with them as a backup that you can either cheaply hedge a position or place cover trades during news. The rest of the trades you could use Oanda I suppose.

As far as Oanda spreads are concerned, unless you trade with an ECN broker ... they are the best retail broker out there. 1 pip spread on EUR/CHF through 3:30AM - 11:30AM EST. Most brokers have fixed 4 or 5 on this pair. 1.8 - 2.0 AUD/USD, 1.2 - 2 EUR/USD. One pair that bothers me is the seemingly fixed 4.0 spread on AUD/JPY.
The market is my nation. Traders, my family. Hello, brothers and sisters!
Quoting turbokaos
SeekingLight,

I know exactly what your talking about and this is the issue w/ variable spread brokers because your still just able to buy/sell and not bid & offer. I have been mirroring all my trades on Oanda and waiting to see if this happens or not. So for example if you where short @ 163.00 w/ stop 163.30 if the spread went 30pips you would get stopped out. Where on CNX on a short the stop is off the bid so if the spread goes wide you don't get bumped out.

So what I'm trying to figure is ODL retail better w/ its fixed spread or Oanda w/ it variable spreads. Lucky for me I don't have to trade on either one but I would like to know what retail platform I can get the closest results to my trades w/ CNX.
i have not notice it trading on there mt-4 platform but im starting to hear that o.d.l. been having minor false spikes lately, i can't comfirm this as im in the bahamas making plans, can you or someone confirm this.
If I Go Broke Trying Then I Will die happy.
Quoting StockKJay
I have been trading with Oanda for about a year now, 6 - 8 month trading technicals. I use a 4hr chart and never concern myself with news releases. So spreads do not matter much at all. The only time the spreads bother me is when I make the stupid mistake of not checking the spread before I place a trade. Two weeks ago I did this around 3:40PM EST on Friday, lapse of focus I suppose. I also placed a trade on AUD/USD about 5 minutes after a trade balance report and found myself paying 3x the normal spread ... gotta check those things first.
Hi StockJay,

Even trading using 4-hour chart, I wonder from time to time you found the market price getting close to your stop loss price and then there are 2 to 3 news being announced everyday (for a particular pair) and the widened stops took out your positions? Like even the GBP/USD is trading with a lower volality now and let's say you set a SL of 40 pips and then the market price moves against you 30 pips over the next few hours and then hover there for quite a long time (like a day or so) and then the widened spreads can take your stops out easily. Sometimes I found that even for a sound strategy but the market is stagnant and the market price does move fast enough away your entry position favourably then the widened stops really bother me.
Quoting forex778
Sometimes I found that even for a sound strategy but the market is stagnant and the market price does move fast enough away your entry position favourably then the widened stops really bother me.

48 pips spread on CPI just an hour ago on USDCAD, kicking my stop only to end up returning to move in my favor. Went 6 pips past me, then resumed making new lows as expected.

Not very cool and a serious issue with a stop over 30 pips away from price just before news. Was hit in an instant.
Attached Image
Trust price. Know yourself.
Quoting SeekingLight
48 pips spread on CPI just an hour ago on USDCAD, ...
The Min/Max price chart you are displaying is not the Min/Max spread. Here's the spread detail:

http://dreamedreality.com/technamental/061907usdcad.jpg

It looks to me like the price also moved fast, dragging the spread with it. Sorry 'bout your trade.
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