Blimey, look at that spread

[foredog]

I've not been trading currencies long, it was always stocks for me but the liquidity is so low i've started doing a bit of FX.

Just watching OAnda and IG as the figures just came out at 930am and OANDA had a 25 pip spread on cable (wider than gbpjpy!!) for about 2 mins either side while i saw IG's spread wided to about 10 pips.

I guess it's usually like this around news, anyone any observations.

PS don't say it's SB's stop hunting, I'd assume it's just them covering their asses so they don't get scalped all over the place in the chop.

 

[ns1000]

PS don't say it's SB's stop hunting, I'd assume it's just them covering their asses so they don't get scalped all over the place in the chop.

I think you've proved the point that SB's are not always any worse than the 'real' market. On some (admittedly not all) instruments, a good SB compares well. It's often assumed on these boards that betting somehow equates to sharp practice. Don't get me wrong, there are instances when this is the case - different companies have different ethoses; a change in desk manager might mean different tactics.

It's good to see an example that shows they're not all out to rip you off - the 'real' FX market widens horrifically over figures at times.

 

[Rossini]

My spread stayed at around 2 on FXCM.

 

[GammaJammer]

OandA and other similar firms basically have a model aimed not at 'scalpers'. They widen out when the liquidity available in turn to them is wider / thinner. Long and short is, if your broker stays at 2 pips in cable over the numbers (when they can't cover at that tightness in the market themselves) they're gonna have to find another way to protect themselves. Usually requotes I guess.

I'd rather trade (if I were in that position) with a firm that is realistic about liquidity. If you're scalping over the numbers on an artificially tight spread then that's your lookout but why should someone else have to pay for that. And if you're not scalping, you're probably not the one worried about it either.

My $0.02

GJ

edit - not saying that's YOU Ross - just a general point....

 

[foredog]

OandA and other similar firms basically have a model aimed not at 'scalpers'. They widen out when the liquidity available in turn to them is wider / thinner. Long and short is, if your broker stays at 2 pips in cable over the numbers (when they can't cover at that tightness in the market themselves) they're gonna have to find another way to protect themselves. Usually requotes I guess.

I'd rather trade (if I were in that position) with a firm that is realistic about liquidity. If you're scalping over the numbers on an artificially tight spread then that's your lookout but why should someone else have to pay for that. And if you're not scalping, you're probably not the one worried about it either.

My $0.02

GJ

edit - not saying that's YOU Ross - just a general point....

Pretty much what i was thinking.

Just a bit different to the FTSE stocks i was used to, didn't often see too wide spread there, because there was so much DMA, very rare for the spread to be 10 times the usual.

I know i'd do the oanda thing if i thought i was going to get screwed.

If we knew that a company had figures out at midday we'd look to reduce the size on the RSP as it automatically tracked the Order book price so we couldn't widen the spread.

 

[jiggly]

no, its about right,

it is the same trading with direct access through something like TT's x-trader platform.

the spreads widen massively, simply due to liquidity. I dont hold it against the SB;s for widening spreads, they cant control the market. and this is what happens during these times.

i dont trade lower time frames so these things dont affect me.