OandA 20 pip spread on GBP/JPY | Forex Factory

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OandA 20 pip spread on GBP/JPY

  • #1
  • First Post: Feb 29, 2008 2:53pm Feb 29, 2008 2:53pm
What's up the 20 pip spread on OandA and the pound yen today?
Is this typical with OandA during the NY session?
  • #2
  • Feb 29, 2008 5:34pm Feb 29, 2008 5:34pm
when you enter weekend trading hours, spreads increase to 10-30 pips...but nothing happens normally in those hours so it shouldn't be a problem.

Cheers
  • #3
  • Feb 29, 2008 5:36pm Feb 29, 2008 5:36pm
Hmmmm. Ok. I just noticed it and it was approximately 2 hours before NY close. It could've been closer to 1 hour, but definitely wasn't within minutes of NY close. Interesting.
  • #4
  • Feb 29, 2008 8:04pm Feb 29, 2008 8:04pm
Quoting GulfCoastPip
Hmmmm. Ok. I just noticed it and it was approximately 2 hours before NY close. It could've been closer to 1 hour, but definitely wasn't within minutes of NY close. Interesting.
Yes they may widen them a few hours prior to NY close. On sundays they dont lower the weekend spreads until a few hours after the market open. You may want to look at the spread statistics.
Private message me for a link to my order flow website.
  • #5
  • Mar 1, 2008 2:09am Mar 1, 2008 2:09am
Spread history for previous week:

http://fxtrade.oanda.com/spreads/recent_spreads.shtml
  • #6
  • Mar 2, 2008 9:19pm Mar 2, 2008 9:19pm
I am new to FF but not to financail markets... ARE YOU TELLING ME OANDA ALLOWS YOU TO TRADE FOREX ON THE WEEKEND!?!?!?

The first thing that confuses me is do they just take the risk on the trade and then hedge it on Sydney Market open?

Second, say for instance there was an earthquake in tokyo on saturday when markets are closed. would Oanda let me go short yen???? I mean even at a 100 pip spread you would make a killing come open on Monday. i cannot see this being a profitable way for them to do business.
  • #7
  • Mar 3, 2008 1:14am Mar 3, 2008 1:14am
is this the same for ECN brokers? spreads increase on sunday? BY THIS MUCH?
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  • #8
  • Mar 3, 2008 1:30am Mar 3, 2008 1:30am
Quoting chiefraven
is this the same for ECN brokers? spreads increase on sunday? BY THIS MUCH?
Oh my god! You meant to tell me that spreads widen when there's no liquidity in the market because the market's not actually open and it's an artificial market then!? Damn, what do I do now?
Never underestimate the powers of the Force.
  • #9
  • Mar 3, 2008 1:38am Mar 3, 2008 1:38am
i'm talking about sunday night
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  • #10
  • Mar 3, 2008 6:55am Mar 3, 2008 6:55am
Quoting Voldemort
I am new to FF but not to financail markets... ARE YOU TELLING ME OANDA ALLOWS YOU TO TRADE FOREX ON THE WEEKEND!?!?!?
Yes. Their spread is usually 20 pips for GJ and 10 pips for UJ.

Quote
The first thing that confuses me is do they just take the risk on the trade and then hedge it on Sydney Market open?

I don't know how they handle that.

Quote
Second, say for instance there was an earthquake in tokyo on saturday when markets are closed. would Oanda let me go short yen???? I mean even at a 100 pip spread you would make a killing come open on Monday. i cannot see this being a profitable way for them to do business.

Yes, it would be possible. Probably Oanda will widen spreads in that case. Sometime the price moves bit during the weekend. I think they calculate the probabilities for some moves and price them in.

Regards - Xaron
  • #11
  • Mar 3, 2008 8:55am Mar 3, 2008 8:55am
Remember that Oanda is a market maker and so if you're a small fish, you can trade pretty much exclusively within their own pool of liquidity.

As for the potential profitability trading on the weekends preceding a disaster, Xaron is correct. Spreads are not truly fixed, even on the weekend and so theoretically, Oanda could widen the spread to 5,000 pips if they thought is necessary I suppose.

Cheers
  • #12
  • Mar 3, 2008 9:15pm Mar 3, 2008 9:15pm
Yea i understand that they make their own market (virtually all brokers make their own market in one way or another). I just think that it is a bit silly to make a market on the weekend when there really is no action.

ehh i guess its just not my style
  • #13
  • Mar 8, 2008 6:00pm Mar 8, 2008 6:00pm
plus they would just crash their servers....and blame it on the earthquake....no one would probably get any fills...
  • #14
  • Mar 11, 2008 1:52am Mar 11, 2008 1:52am
Quoting Voldemort
I am new to FF but not to financail markets... ARE YOU TELLING ME OANDA ALLOWS YOU TO TRADE FOREX ON THE WEEKEND!?!?!?

The first thing that confuses me is do they just take the risk on the trade and then hedge it on Sydney Market open?

Second, say for instance there was an earthquake in tokyo on saturday when markets are closed. would Oanda let me go short yen???? I mean even at a 100 pip spread you would make a killing come open on Monday. i cannot see this being a profitable way for them to do business.
whatever you want but you would end up paying a huge spread so its not possible to exploit it such way.
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  • #15
  • Last Post: Mar 11, 2008 1:55am Mar 11, 2008 1:55am
Quoting chiefraven
is this the same for ECN brokers? spreads increase on sunday? BY THIS MUCH?
basically it doesn't matter because no matter what anyone tells you, orders under 300k do not go to the interbank market(which has nil liquidity on weekends). so to answer your question, your broker can do whatever the hell they please and you've agreed to it by signing up with any of the forex brokers.
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