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Oanda 10 pip spread on nov 2, 2:30-3pm EST for EUR/USD?

  • Post #1
  • Quote
  • First Post: Nov 3, 2007 8:37am Nov 3, 2007 8:37am
Why would Oanda increase the spread toward the end of the week's trading session? I didn't notice any important news items being reported around that time.Thank you!
It's probably because so many people are bearish E/U and Oanda wants to make money off of em

http://fxtrade.oanda.com/resources/t.../posratios.png
Quoting rudenstein
Why would Oanda increase the spread toward the end of the week's trading session? I didn't notice any important news items being reported around that time.Thank you!
When a broker increases the spread it means that they don't want to trade with you. Hopefully, you took the hint.

I'm amazed at the number of people short the EURUSD on that graphic. That goes a long way in explaining why so many people blow their accounts.
They typically do that for all pairs a few hours before weekend close and a few hours after weekend open. Not many people trade during that time, so they widen the spread to account for low liquidity.
Quoting philmcgrew
I'm amazed at the number of people short the EURUSD on that graphic. That goes a long way in explaining why so many people blow their accounts.
...and look at the number of people long the USDCHF... a higher ratio than of people short the E/U
  • Post #6
  • Quote
  • Edited 10:55am Nov 3, 2007 10:54am | Edited 10:55am
MoForce, my old eyes are not so good anymore and I'm having a little difficulty discerning one of the positions on your chart.

It's near the 75% mark on the vertical chart and it looks to me like you have 3 colors combined there. Is it my eyes or my monitor? Do you have the US/JPY, GB/US, AND EU/JPY combined there or is it just one color there?

Thanks for posting the chart. It's informative for me.
Quoting philmcgrew
When a broker increases the spread it means that they don't want to trade with you. Hopefully, you took the hint.

I'm amazed at the number of people short the EURUSD on that graphic. That goes a long way in explaining why so many people blow their accounts.
I agree, its pretty shocking. Almost as bad as trying to pick the bottom on the USDCAD. As for the spread widening with oanda, they do it every friday, its their standard weekend policy, sometimes they do it earlier than previous weeks, sometimes later. They got me once and boy was I pissed, but never again. I always check the spread every time I place a trade with them.
"It shows how much patience you should have at all times during every trading day. Some days require more patience than others. "

This is an intersting and relevant psychological issue for me since I think that at this point in my newbie forex trading life, I'm more afraid of losing money than I am confident about making money in the forex.

For example, on one trade I got out of one trade (I think I was long GB/US)lost about $300 by not riding it out until it came back. An hour later, it reversed and I would have made $300 or better.

Is scalping harder than longer trades? Does it take more courage (or smarts) to stay in trades longer or just more good knowledge?

Opinions and/or examples of nail biting trades please.
low liquidity = high spreads

Same thing that happens before any major news release all major banks/trader puller order therefor the spreads increase.
Hey MoForce,

Where can I get a chart like that? The info would come in handy.

Terry
Quoting In2Blues
Hey MoForce,

Where can I get a chart like that? The info would come in handy.

Terry
You can find it here (http://fxtrade.oanda.com/resources/trastats/ratio_positions.shtml).
Quoting In2Blues
Hey MoForce,

Where can I get a chart like that? The info would come in handy.

Terry
lol just whatever you do... don't go with the majority... remember that 90% of traders fail and this is proof :surprised

http://fxtrade.oanda.com/resources/trastats/ratio_positions.shtml
Quoting garyhope
MoForce, my old eyes are not so good anymore and I'm having a little difficulty discerning one of the positions on your chart.

It's near the 75% mark on the vertical chart and it looks to me like you have 3 colors combined there. Is it my eyes or my monitor? Do you have the US/JPY, GB/US, AND EU/JPY combined there or is it just one color there?

Thanks for posting the chart. It's informative for me.
There are more than 1 color near the 75% mark for sure... I can see U/J and G/J for sure. I think U/Cad is there as well. It's probably your monitor playing tricks on you. I use a laptop so I can adjust my monitor so I can see the difference slightly.

Just a note: that image is always up to date
I noticed that as well....and always notice it on the Sunday open.

I don't remember it being like that with IBFX.

Oanda is great...that's just one of the few bad things about it.
Quoting philmcgrew
You can find it here (http://fxtrade.oanda.com/resources/trastats/ratio_positions.shtml).
Phil... how do you post the link lik that? with a word or sentance instead of the whole link address showing.....
Same Whore .... Different Dress
Quoting johnedoe
Phil... how do you post the link lik that? with a word or sentance instead of the whole link address showing.....
By doing this (http://screencast.com/t/fNHzMiKNA).
Quoting turbokaos
low liquidity = high spreads

Same thing that happens before any major news release all major banks/trader puller order therefor the spreads increase.
I have to agree with turbokaos' assessment. I trade live with EFX/MBT who are an ECN and they don't manipulate the spreads, yet I see this same occurance, as well, and with some major pairs, too (not just with the exotic pairs which is normal for those to have low liquidity). The only pair I don't see the spread widenly 4+ pips hardly at all is EUR/USD. That one normally stays under 3 pips (average would be 1 pip). All other major pairs just the other day had been fluctuating even to 4 - 5 pip spreads which was probably due to the NF news. Normally, they are 1 - 3 pip spreads otherwise. It's good when you can catch them at 0

Quoting Oanda's graph info
The left graph depicts the ratio of long positions to short positions, identifying whether customers are more long or more short, and by how much. The right graph depicts the ratio of positions for each currency pair (both long and short) relative to the number of all positions for currency pairs represented in the graph.
LOL, thanks for linking the actual site, Phil (and MoForce) cuz I think this explanation was needed especially for the pie graph, cuz I was at first surprised that that many traders were going short on EUR/USD when the overall trend is LONG, but when I looked at the graph more closely and reading the actual Oanda site for the pie graph info, it makes more sense now.

Basically just a tad over 25% are going short on EUR/USD (so not the majority, thank heavens), and the pie graph on the right depicts the ratio of positons, so that makes sense that EUR/USD has a larger piece of the pie due to higher liquidity.

USD/CHF is surprising though, because my charts show that currency pair as SHORT for the major trend (on all timeframes from 15m to monthly), yet according to that chart, approx. 80% are going LONG on that (unless Oanda mistakenly color coded the wrong currency pair for that). Interesting.
ACK, wait. Do you guys see the date in the upper right corner of the graph image? Does it say 3/11/2007?

If you do (and I'm not the only one seeing this date, lol), then that would make a little more sense then about USD/CHF not being majority short.

Hmmmm, it says sampled Nov. 3 though, so who knows what that graph is depicting at this point, lol.
Quoting philmcgrew
By doing this (http://screencast.com/t/fNHzMiKNA).
Thank you.....
Same Whore .... Different Dress
Quoting leighsww
ACK, wait. Do you guys see the date in the upper right corner of the graph image? Does it say 3/11/2007?

If you do (and I'm not the only one seeing this date, lol), then that would make a little more sense then about USD/CHF not being majority short.

Hmmmm, it says sampled Nov. 3 though, so who knows what that graph is depicting at this point, lol.
I thought the same thing but I think it's the way Europeans, and others, write their date format.
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