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How do you deal with widening spreads at the rollover? 16 replies

Avoid being stopped by temporary widening spreads 0 replies

Spreads widening before news release 5 replies

Broker widening spreads on JPY 10 replies

OANDA users...how do you profit when spreads change 32 replies

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Oanda users - Oanda widening spreads

  • #21
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  • Dec 4, 2010 8:15pm Dec 4, 2010 8:15pm
Its part of the risk when trading news. I do think Oanda and other brokers take advantage of this situation though. Personally I stay away from news trading. I have never known anyone to prevail over time trading the news. Although it may be exciting and you may find a worm here and there, it is not a way to make a living.
  • #22
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  • May 27, 2011 5:00pm May 27, 2011 5:00pm
Those who are trading on technicals (charts ) they are saying : do not trsde at newstime. And they have right: Oanda wides the spread to 10 on eur/usd. Sometimes the spike is 40 pip sometimes 100. What you see as price on your PC is the last tick sent by Oanda few seconds ago. Look at the chart how fast is moving at news release spike! What is now the price isn't in 2 sec or 5 sec.
You have to press the BUY button, your PC send a request over the network to Oanda, they need to process your order and send to you a message. This is another 2-7 sec or even more. And from the total of 100 pip spike lets say you want to jump in at 30. +10 is the spread and the "slippage" is another 10-30 depends on the conditions. Let say an average 20. 30+10+20=50. So you can make 50 if you catch the top. if not less, if you miss you lose, if not 100 pip just 60, you lose. + there is no any technical indicator to show the first direction of the spike.

For those who are trading on fundamental: the news are fuel of the price movement. There is no time more predictable direction than at news releases. If you have enough experience: which news, has enough importance, is the market balanced, or there are to many bolls or bears..and so on. It can be the most high probability direction movement.

At babypips.com there is a description how to trade on news: sideway or one way.

In my bible: Jesse Livermore -Reminiscences Of A Stock Operator it say something like : the first and the 8th candles are so expensieve. They made to lose ppl so much money than it could be buit a highway around of the World. Well, I did me to a "donation" to that highway, and now I don't want more.

I would suggest, when news released and the bear-bull fight effect is gone, if you see a realy good nnews or a realy bag one, than go in that direction, and don't try to catch the spike from bottom to top...

If you can, close your position before spike. Open position after pullback, catch the second or 3 rd elliot wave,

I hope it helps
I want to buy PATIENCE
  • #23
  • Quote
  • Jul 15, 2011 1:20pm Jul 15, 2011 1:20pm
Just lost my 'spread-widening' virginity (about 3 hours ago), and put it down to bad luck, as the price level where I had my stop orders coincided with a medium level news announcement.

The end result was I lost double of what I was expecting to lose because of my tight stop, and I'm disappointed because I lost more money than expected, though I wouldn't do anything different.

I thought I'd post so others realise that it does happen and factor it into their trading.

Good luck!
Good judgement comes from experience. Experience comes from bad judgement.
  • #24
  • Quote
  • Edited 6:33am Jul 19, 2011 6:31am | Edited 6:33am
oanda spread widening is negative for me. Even their normal spread at EURCHF (3.4 pip) screwed my stop yesterday. In my mind EURUSD spread is not 0.9, if i trade it's 1.2 generally. If i want to trade at news or high vol. i have to switch to ECN, i can do it, but it's not comfortable. Imho they have good reputation and they are capitalizing on it with these spread tricks. They are still a good company in my eyes, they could be even better, but they want more profit.
  • #25
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  • Jul 25, 2011 6:42am Jul 25, 2011 6:42am
Quoting sanyi
oanda spread widening is negative for me. Even their normal spread at EURCHF (3.4 pip) screwed my stop yesterday. In my mind EURUSD spread is not 0.9, if i trade it's 1.2 generally. If i want to trade at news or high vol. i have to switch to ECN, i can do it, but it's not comfortable. Imho they have good reputation and they are capitalizing on it with these spread tricks. They are still a good company in my eyes, they could be even better, but they want more profit.
They are getting worse about their spread. They have several pairs with an unusually high spread for this time. No news either.
  • #26
  • Quote
  • Jul 25, 2011 7:04am Jul 25, 2011 7:04am
It's the debt ceiling uncertainty. They've widened the spreads in the past during unsettled periods. Remember the banking crisis in 2008-2009?
You are in a maze of twisty little passages, all alike.
  • #27
  • Quote
  • Jul 25, 2011 7:27am Jul 25, 2011 7:27am
Avoid day-trading and do swing trading.....U will find yourself being successful gradually.....trust me
I have past history of statements to justify what i say.
  • #28
  • Quote
  • Jan 12, 2012 4:41am Jan 12, 2012 4:41am
The latest showcase of OANDA widening spread just after the release of GBP Manufacturing Production m/m few minutes back


http://i39.tinypic.com/j0z1y1.png

  • #29
  • Quote
  • Jan 12, 2012 4:52am Jan 12, 2012 4:52am
I was seriously thinking to switching to Oanda as my broker but seeing this makes me think twice about it. With this kind of carry on it makes trading the news with Oanda virtually impossible......perhaps this is what they want.
  • #30
  • Quote
  • Jan 12, 2012 6:59am Jan 12, 2012 6:59am
Quoting Forexgain
The latest showcase of OANDA widening spread just after the release of GBP Manufacturing Production m/m few minutes back


http://i39.tinypic.com/j0z1y1.png

You should be very new on forex, right?

Oanda is doing this at least for the last 5 years. Nothing new here.

All brokers do some kind of gimmick around news time because of liquidity issues. If they don't widen the spreads they will re-cote you, not take your trade at all, freeze the platform etc.

I trade with them and my biggest issue is their platform instability. If you make money they freeze you very often.
  • #31
  • Quote
  • Dec 30, 2013 5:54pm Dec 30, 2013 5:54pm
Quoting paulmccarthy
I was seriously thinking to switching to Oanda as my broker but seeing this makes me think twice about it. With this kind of carry on it makes trading the news with Oanda virtually impossible......perhaps this is what they want.
Quoting 2+2=4ex
{quote} They are getting worse about their spread. They have several pairs with an unusually high spread for this time. No news either.
I know I'm bumping an old thread. But this is still relevant today...what I'm starting to notice with this company is that they do have really great spreads often with EUR/USD being around 1.5 during the Asian session, sometimes lower during London. Compare that with around a pip more with most mainstream brokers. But around news and DAILY during rollover, you better cancel all of your close short term trades, because they'll completely rape you for your stops. And by "rollover" I mean around 5 Eastern time they get the excuse to perform an obscene tripling of their spreads on some pairs; tonight I watched Swissy go from 2.5 to over 9 points and hang around that mark for an extended period of time. I'm not the kind of person who blames trading failure on brokers typically, but some of the behavior I've seen with Oanda is pretty disappointing. I don't even know if they really care that their reputation here on the world's biggest forex forum is going down the toilet for short term profit on their part. Why won't one of their representatives address this? What gives Oanda the excuse to do this while no other regulated broker I've worked with has had this issue? Is it true that Oanda's low normal time spreads are the result of forwarding some of the profit from these other bad practices in order to get new signups? Very unethical marketing strategy if so.
  • #32
  • Quote
  • Jan 8, 2014 1:40pm Jan 8, 2014 1:40pm
Oanda spread can vary a great deal (the case with some major US brokers). On a day, even EUR/USD pair can spike up to 15. Neverthless, there are constant spikes on EUR/USD ranging from 3 to 6 and sometimes more. Same with other pairs. Despite this Oanda got goood reputation (one of few brokers publishing various trade metrics increasing transparency). I think you can check their historical spreads on Oanda website. However, those are average spreads and doesnt indicate maximum spread on a pair.
  • #33
  • Quote
  • Jan 11, 2014 2:50am Jan 11, 2014 2:50am
Quoting Kanzler
{quote} {quote} I know I'm bumping an old thread. But this is still relevant today...what I'm starting to notice with this company is that they do have really great spreads often with EUR/USD being around 1.5 during the Asian session, sometimes lower during London. Compare that with around a pip more with most mainstream brokers. But around news and DAILY during rollover, you better cancel all of your close short term trades, because they'll completely rape you for your stops. And by "rollover" I mean around 5 Eastern time they get the excuse to...

Totally agree. During rollover, they are increasing the spread and spiking the price. I have Oanda charts running on one screen and I trade on MB Trading on another screen. During rollover MB Trading goes down (as it should, usually lasts a few minutes). Oanda will spike a few currency pairs, and then settle back on the opening price. Besides the spike, the spread can be outrageous. Watch it yourself. It's the main reason why I left Oanda.
  • #34
  • Quote
  • Jan 11, 2014 2:54am Jan 11, 2014 2:54am
Quoting Umaf
Oanda spread can vary a great deal (the case with some major US brokers). On a day, even EUR/USD pair can spike up to 15. Neverthless, there are constant spikes on EUR/USD ranging from 3 to 6 and sometimes more. Same with other pairs. Despite this Oanda got goood reputation (one of few brokers publishing various trade metrics increasing transparency). I think you can check their historical spreads on Oanda website. However, those are average spreads and doesnt indicate maximum spread on a pair.
Yes, the spreads they report on historical spreads are nowhere close to the actual spread. I've have their website us and their charts up and it's not even close. I would go so far as to say they are lying. I've seen their reported spreads as 1.5 while I'm watching realtime and it's 7. You go back to their historic spread website and it's not even close to 7.
  • #35
  • Quote
  • Jan 27, 2014 10:23pm Jan 27, 2014 10:23pm
Quoting TheGrind
{quote} Totally agree. During rollover, they are increasing the spread and spiking the price. I have Oanda charts running on one screen and I trade on MB Trading on another screen. During rollover MB Trading goes down (as it should, usually lasts a few minutes). Oanda will spike a few currency pairs, and then settle back on the opening price. Besides the spike, the spread can be outrageous. Watch it yourself. It's the main reason why I left Oanda.
I'm giving FXCM's dealing desk execution a chance although I haven't had many good high quality opportunities to test it yet. So far I haven't noticed any radical spread widenings, though. That and my primary trading machine lost its graphic card last week so I haven't been too active lately. Sorry for the delayed response.
  • #36
  • Quote
  • Jan 28, 2014 2:51am Jan 28, 2014 2:51am
Quoting TheGrind
{quote} Totally agree. During rollover, they are increasing the spread and spiking the price. I have Oanda charts running on one screen and I trade on MB Trading on another screen. During rollover MB Trading goes down (as it should, usually lasts a few minutes). Oanda will spike a few currency pairs, and then settle back on the opening price. Besides the spike, the spread can be outrageous. Watch it yourself. It's the main reason why I left Oanda.

I have both accounts MB trading and Oanda
MB trading just hammered me with 30% fees on commission free account.When I called nobody could explain why those fees were charged.I really liked them until now.Will close MBtrading.Their bucket style of fees totally turned me off.I had exact same trades with Oanda and I only paid small roll over fees minor.
Overall I am happy with Oanda.Spread fluctuations don't bother me because I trade daily chart so not scalper.
Regards
In trading, you have to be defensive and aggressive at the same time
  • #37
  • Quote
  • Mar 5, 2014 3:57pm Mar 5, 2014 3:57pm
I've been trading with Oanda for a few weeks now and while they do have low spreads during normal trading hours, their spreads get totally Ridiculous during economic news releases and during the evenings US Eastern time around 4:45 pm to about 5:30pm. I've noticed spread spikes upto 20 pips and higher on some major cross pairs. Gets even worse a few minutes before market closes on Friday evening and when it first opens Sunday evening. If you check their spreads history and select the 'Maximum' on the chart - not the 'average', you'll see spreads going upto 25 pips and higher on some pairs more than once Every Week. Oanda classifies many major crosses as 'exotic' I noticed. I think this is crap and plainly unethical. I am considering closing my Oanda acct. I also have an acct with IBFX and Tradestation and neither widens the spread as far apart as Oanda does at any time. In my opinion Oanda does this to make up for the 'low spreads' they advertise during the rest of the trading sessions. You could be in a trade that you entered around 3 pm and be up 15 pips only to get stopped out around 5:00 pm or so because the spread widened to 20+ pips briefly. I currently have an alarm set now to remind me to remove my stops around 4:30 for any trade that is within 30 pips of entry price and then I reenter the stops around 5:30 or later. A little risky but has worked for me so far; this is after being stopped out of a few trades during rollover previously. I would Not recommend Oanda to Anybody new to Forex. Even if you day trade, if price takes a swing lower briefly and your trade is somewhat close to your entry you risk getting stopped out simply because of a brief widening of the spread by Oanda brokerage alone. You will not see the same bid/ask price on other Brokers. I've checkd my IBFX and Tradestation quotes regularly around 5:00 pm to compare with Oanda. Oanda is plainly Ridiculous. I think ForexFactory should not carry Oanda ads on its site. What Oanda is doing is plainly criminal and an insult to it's customers.
  • #38
  • Quote
  • Mar 5, 2014 9:41pm Mar 5, 2014 9:41pm
Yep, I had a pretty bad day today with Oanda on this too... at least 3 trades got stopped out because of sub 2 pip spreads suddenly jumping to 15+ pip spreads (one hit 20+) Two were news events, but the other had no clear reason other than it was 4:30 and a cross pair (even better, on that one it was a limit order that got triggered by the spread widening and then stopped out a second later as the pair started to move with the wide spread) . I really love it when you are 15 pips away from your stop and the spread widens, takes you out, goes back to normal without the price moving and *then* moves in the direction you were expecting the trade to go fast. It's a really fun time.

I guess the real problem I have is that I don't understand the mechanics behind what they claim to be the cause of it... it doesn't seem to me that the bid/ask spread should diverge by orders of magnitude in the second or two that these blips happen. If liquidity is truly drying up it seems that the bid and ask would stay static and no trades would be made, ergo the widening of the spread is purely a profit taking move and artificially induced. Can someone explain the mechanics of the magical mystery spread widening?
  • #39
  • Quote
  • Mar 5, 2014 9:57pm Mar 5, 2014 9:57pm
Quoting Entr04y
I guess the real problem I have is that I don't understand the mechanics behind what they claim to be the cause of it... it doesn't seem to me that the bid/ask spread should diverge by orders of magnitude in the second or two that these blips happen. If liquidity is truly drying up it seems that the bid and ask would stay static and no trades would be made, ergo the widening of the spread is purely a profit taking move and artificially induced. Can someone explain the mechanics of the magical mystery spread widening?
Disclaimer: I don't know what Oanda's been telling you.

If liquidity dries up for whatever length of time, why would the bid/offer spread remain static if the market makers behind those bids and offers take off their interests from the market?

You can call the widening of the spread a purely "profit-taking move and artificially induced" if it makes you feel any better. But having been an interbank market maker in my previous life, I know enough NOT to leave any money on the table (and consequently any of MY bids or offers in the market) in uncertain market conditions as a risk management measure. When enough market makers take their interests OFF the market, the spreads WILL widen.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #40
  • Quote
  • Mar 5, 2014 10:11pm Mar 5, 2014 10:11pm
http://www.easyfreesmileys.com/smileys/lol-045.gif OANDA GET THEM
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