Do bid/ask Spreads Vary Throughout The Day?

tradingjamie

Newbie
4 0
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
 

Hoggums

Senior member
2,176 878
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.
 

tradingjamie

Newbie
4 0
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?
 

darktone

Veteren member
4,016 1,084
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.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock