Do bid/ask Spreads Vary Throughout The Day?

This is a discussion on Do bid/ask Spreads Vary Throughout The Day? within the Spread Betting & CFDs forums, part of the Commercial category; Hi All, Does anyone know if spreads change throughout the day? Essentially, Im looking to place some orders but I ...

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Old Nov 27, 2013, 9:21am   #1
 
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Do bid/ask Spreads Vary Throughout The Day?

Hi All,

Does anyone know if spreads change throughout the day?

Essentially, Im looking to place some orders but I only get time to login to my spread bet account when I get back home from work (around 9pm ish) - but Im concerned if spreads are adding to costs because of the time Im placing the order. Are they tighter when the underlying market is open?

Many thanks for your help
Jamie
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Old Nov 27, 2013, 9:27am   #2
 
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short answer - yes and no. It entirely depends on when the order is triggered (assuming it's a stop or limit order and not a market order). If the order is triggered during market hours you will benefit from the tighter spread. If it gets triggered when the market is closed - then you will pay the extra spread.
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Old Nov 27, 2013, 9:34am   #3
 
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tradingjamie started this thread Hmmm just as I expected - thanks very much for your reply Hoggums! Its worth me logging in at work then to place my orders.

Just out of interest, do they also vary during market hours?
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Old Nov 27, 2013, 9:45am   #4
 
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Quote:
Originally Posted by tradingjamie View Post
Hi All,

Does anyone know if spreads change throughout the day?

Essentially, Im looking to place some orders but I only get time to login to my spread bet account when I get back home from work (around 9pm ish) - but Im concerned if spreads are adding to costs because of the time Im placing the order. Are they tighter when the underlying market is open?

Many thanks for your help
Jamie
As Hoggums said, spreads change.
You said youre spreadbetting so it depends on what they offer and what youre trading. For example a lot of SB co offer a fixed spread on indices/forex etc, some change the the spread out of hours of when the market gets volatile. I think most offer variable spreads on individual stocks.
Whether or not it 'adds' to your costs will depends on what orders you use and how the spread changes. Generally, if its variable as to replicate the underlying:-
A stop will add to costs.
A limit will reduce costs.
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Old Nov 27, 2013, 9:57am   #5
 
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tradingjamie started this thread thanks guys, appreciated.
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