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Variable spread (extremely high raw spreads)

  • Post #1
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  • First Post: Feb 27, 2024 5:24pm Feb 27, 2024 5:24pm
In my Journey to figure out what i need to figure out to trade succesfully, i was checking out the live spreads just now (around 23:00 european time) on forexfactory.. and i noticed all the spreads are sky high.. ranging from a still overse3able 2.4 pips all the way up to an astonishing 23.5 pips.. i was unaware of such extreme spreads even existing, and wondering if these periods during the day are simply avoided for the most part by people already trading, with the exception of the lower end of available spreads, if a setup appears.. I mean you certainly will have a hard time scalp trading any profit with spreads that high..or regular trading in the case of the 23.5 pip spread..


I was under the impression that trading oppertunities were available 24/5 but if this is normal, thrn that definetly isnt the case.


Additionally i would like to ask if anybody dealing with prime of prime brokers knows if this sky high spreads phenonenon during some parts of the day is true in that case too..

I had found a link at some point researching prime of prime brokers but cant find it anymore, and there they mentioned average spreads that were a fraction of a pip..way less then 0.1 pip. but i cant find that link anymore and dont know if what i saw was exactly that.. so therefore i am wondering if spreads are also an issue with prime of prime brokers, or if they have neglectable spreads. Or possibly something in betwen.


Greetings.
Quoting StefanN
In my Journey to figure out what i need to figure out to trade succesfully, i was checking out the live spreads just now (around 23:00 european time) on forexfactory.. and i noticed all the spreads are sky high.. ranging from a still overse3able 2.4 pips all the way up to an astonishing 23.5 pips.. i was unaware of such extreme spreads even existing, and wondering if these periods during the day are simply avoided for the most part by people already trading, with the exception of the lower end of available spreads, if a setup appears.. I mean you...


Ive been talking about it to chatgpt, and he told me that this is normal, as outside of the main trading hours of the currencies involved there is a much lower liquidity.. i guess its just the way it is.
this indirectly answers my other question too, because the available liquidity dictates if prime of prime brokers are able to offer low spreads directly too.. unlesa prime of prime brokers "use up" the available liquidity and still offer good spreads.. if anybody knows, please let me know.
Quoting StefanN
In my Journey to figure out what i need to figure out to trade succesfully, i was checking out the live spreads just now (around 23:00 european time) on forexfactory.. and i noticed all the spreads are sky high.. ranging from a still overse3able 2.4 pips all the way up to an astonishing 23.5 pips.. i was unaware of such extreme spreads even existing, and wondering if these periods during the day are simply avoided for the most part by people already trading, with the exception of the lower end of available spreads, if a setup appears.. I mean you...
Rollover
And belongs in another forum
Quoting DwnUndrTrdr
{quote} Rollover And belongs in another forum

My apologies for posting thisin the wrong forum..

But what does rollover have to do with this?
Rollover being keeping a trade open from one day into the next.
Quoting StefanN
{quote} My apologies for posting thisin the wrong forum.. But what does rollover have to do with this? Rollover being keeping a trade open from one day into the next.

I just checked out the comparison again and theyre back to normal! So this was a temporary increase in spread due to the time close to midnight.. glad to have gotten to yhe bottom of this.. thanks gor the info.
Happens every day when markets close
Quoting StefanN
In my Journey to figure out what i need to figure out to trade succesfully, i was checking out the live spreads just now (around 23:00 european time) on forexfactory.. and i noticed all the spreads are sky high.. ranging from a still overse3able 2.4 pips all the way up to an astonishing 23.5 pips.. i was unaware of such extreme spreads even existing.
Because it's the daily close / rollover, which takes place at 17:00 US Eastern time, every day of the year. It's the most illiquid time of day; most major financial centers are closed.
You can compare brokers' historical spreads for all times of day as well as real-time spreads on various websites.
For example, the picture in this thread: https://www.forexfactory.com/thread/...8#post14735638
Variable spread is a common thing in Forex brokers and it can be a temporary spread increase and I am saying it out of my little knowledge. It sometimes happens.
Quoting Trivion
{quote} Because it's the daily close / rollover, which takes place at 17:00 US Eastern time, every day of the year. It's the most illiquid time of day; most major financial centers are closed. You can compare brokers' historical spreads for all times of day as well as real-time spreads on various websites. For example, the picture in this thread: https://www.forexfactory.com/thread/...8#post14735638

Now with these new comments it is unclear to me if this a temporary phenomenon, as i observed last time, or if this increase lasts untill the markets open again.. last time i was checking they were all back to normal sone 20 minutes after midnight.
Quoting StefanN
{quote} Now with these new comments it is unclear to me if this a temporary phenomenon, as i observed last time, or if this increase lasts untill the markets open again.. last time i was checking they were all back to normal sone 20 minutes after midnight.

I read about it.. it seems to be linked to a automatic system where if your trade is held into the next day, the system automatically sells and buys with the temporary spread. If im wrong please let me know.
Okay noobs, do this, go to MarketWatch, right click on any instrument, choose Specification, read the Trade TIMES

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Market closes every day, this is when they calculate for your daily statement; you get an email statement, right?

They can't calculate on moving prices, and of course, when its re-opens, the spread is wide and sometimes HUGE.

If you trade like me, you'll be homeless and broke within a week.
Texas-2-Step All Time Return: -1.0%
  • Post #12
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  • Last Post: Mar 8, 2024 10:45am Mar 8, 2024 10:45am
Quoting StefanN
{quote} Now with these new comments it is unclear to me if this a temporary phenomenon, as i observed last time, or if this increase lasts untill the markets open again..
Actually, the forex market doesn't fully close at all during the week. (It's just the daily candle close; and the swap is charged.) Some brokers may halt trading for 1 to 10 minutes but it's their own decision. The increased spreads usually last about an hour, but can last longer during US public holidays.
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