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Spread questions..

  • #1
  • First Post: Dec 26, 2008 2:59pm Dec 26, 2008 2:59pm
hello,
i am live with oanda and see their pips on most of the majors are what i would expect this time of year (10-20 pips)..am using fx club demo and see they are no more than 3-8 pips on the same pairs..is this normal forex club what is anyone's opinion of them?

thanks and happy holidays..
  • #2
  • Dec 30, 2008 2:47pm Dec 30, 2008 2:47pm
keep in mind spreads depend of currencies you are trading with. If there are lots of traders investing on a particular pair, spread goes up. Kevin
  • #3
  • Dec 30, 2008 3:38pm Dec 30, 2008 3:38pm
Quoting murpheytrade
keep in mind spreads depend of currencies you are trading with. If there are lots of traders investing on a particular pair, spread goes up. Kevin

That is 100 percent not true!
  • #4
  • Dec 30, 2008 3:44pm Dec 30, 2008 3:44pm
Spreads will be higher with ECN brokers since you are looking at the true market condtions. Retail brokers with fixed spreads are the bomb right now! (Your orders isnt on the interbank it stays in-house and the broker typically is trading against you. he's the couterparty NOT the interbank)
  • #5
  • Dec 30, 2008 4:04pm Dec 30, 2008 4:04pm
Just trade long term and 5 pips more or less will not matter anymore.
  • #6
  • Dec 30, 2008 4:24pm Dec 30, 2008 4:24pm
Quoting murpheytrade
keep in mind spreads depend of currencies you are trading with. If there are lots of traders investing on a particular pair, spread goes up. Kevin
I thought it was the opposite ....
  • #7
  • Dec 30, 2008 4:30pm Dec 30, 2008 4:30pm
Depends. If everyone is buying but no one is selling. Spread gets wide.(e.g News Report) This what you have during low volume times. The only thing is that you don't have as many counterparties compared to US/London Session.
So it's easier to widen the spread.
  • #8
  • Dec 30, 2008 9:03pm Dec 30, 2008 9:03pm
Quoting Tjpld
Depends. If everyone is buying but no one is selling. Spread gets wide.(e.g News Report) This what you have during low volume times. The only thing is that you don't have as many counterparties compared to US/London Session.
So it's easier to widen the spread.
News times are illiquid times, think about what you just said, you can have a liquid market if everyone is buying and no one is selling. I know so many of you news traders think it is a great time to trade (not saying you are one Tjpld) but the only ones trading the numbers when they come out are retailers and market makers that handle that flow. The rest kind of just wait for liquidity to come back into the market which doesnt take very long anyways.
  • #9
  • Dec 30, 2008 10:08pm Dec 30, 2008 10:08pm
Quoting Fulltime247
Spreads will be higher with ECN brokers since you are looking at the true market condtions. Retail brokers with fixed spreads are the bomb right now! (Your orders isnt on the interbank it stays in-house and the broker typically is trading against you. he's the couterparty NOT the interbank)
True market? there is no such thing, this is no central exchange that forex is traded on. Not even the interbank is true pricing, the retail market entails over 30% of the market now and that number is growing, so even there price isnt the right one. And someone is always trading against you, what does it matter who it is, Joe schmoe from timbuktoo or your broker. Again MM's and most banks fill on an aggregate level, so moving the market to hit someones stop is not worth the risk....

Point is, dont scalp, noobs do that, learn technicals and watch fundamentals, and you will get much further...
  • #10
  • Dec 31, 2008 2:48am Dec 31, 2008 2:48am
Quoting fxtrader42
News times are illiquid times, think about what you just said, you can have a liquid market if everyone is buying and no one is selling. I know so many of you news traders think it is a great time to trade (not saying you are one Tjpld) but the only ones trading the numbers when they come out are retailers and market makers that handle that flow. The rest kind of just wait for liquidity to come back into the market which doesnt take very long anyways.
Yes of course they are liquid but only onesided. This is what makes the spread go wide. Under normal very liquid conditions you always have someone to buy or sell from you just 1-2 pips away. But during News Time which still has lot of players in it ,everyone wants to buy but no one is selling. -> Spread gets wide. During low volume ties it's easier to achieve the same because there are less counter parties.
  • #11
  • Dec 31, 2008 8:00am Dec 31, 2008 8:00am
Quoting Tjpld
Yes of course they are liquid but only onesided. This is what makes the spread go wide. Under normal very liquid conditions you always have someone to buy or sell from you just 1-2 pips away. But during News Time which still has lot of players in it ,everyone wants to buy but no one is selling. -> Spread gets wide. During low volume ties it's easier to achieve the same because there are less counter parties.
Spread does go wide because there are less orders on one side of the market. However, that is not a liquid market at all and honestly there are not a lot of traders wanting to act on that initial announcement.
  • #12
  • Dec 31, 2008 8:15am Dec 31, 2008 8:15am
I agree with everyone.
Spread varies from broker to broker, market conditions, such as liquidity, volatility, etc.

Babypips.com http://www.babypips.com/school/how_y...ing_forex.html have a great article on the "Cost of Forex". While your there, take a peak around the site. It holds "price-less" info on fx trading, from the who, why, & how ... to trade strategies, etc.

Another valuable resource that will help you (and I) in your quest for green pips, Investopedia, http://www.investopedia.com/, is choked full of interesting information about fx ... just do a forex search on any fx subject matter.

And we can't for get about FF (forexfactory). Half the things I learned was on this board, before I even setup an account.
  • #13
  • Dec 31, 2008 8:24am Dec 31, 2008 8:24am
Quoting fxtrader42
However, that is not a liquid market at all and honestly there are not a lot of traders wanting to act on that initial announcement.
Yes I have to agree. Liquid rather means. "There is someone buying at any price all the time" I confused liquid with active.
  • #14
  • Jan 22, 2009 10:14am Jan 22, 2009 10:14am
Quoting fxtrader42
That is 100 percent not true!
then spreads depend on how liquid is the market according to your comments. That is what I was saying, when lots of traders are trading in a particular pair because of a fundamental occurrence, bid and ask change and it becomes hardly or more expensive entering in that market. there’re also broker facts affecting spreads
  • #15
  • Jan 22, 2009 10:32am Jan 22, 2009 10:32am
LOL.

Liquidity is the money I plan to add to my bank account.

Spreads widen when a sudden burst of trades come in, but the typical spread is based on the liquidity (volume being traded). If there are more ppl trading then someone will probably be willing to trade closer to your price (depending entirely on the size of your trade tho). Assuming an ECN of course, w/ a bucket shop it hardly matters. You pay what they want you to pay.
  • #16
  • Last Post: Nov 26, 2022 1:00pm Nov 26, 2022 1:00pm
Quoting TJPLD
Just trade long term and 5 pips more or less will not matter anymore.
hello, can I ask you which timeframe is suitable for trading long term if the spread in some pair such as GBPNZD is around 4-5 pips?
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