Mechanics Of Spread Variations


Active member
Could someone explain the variations in the spreads and what you have to look out for.

For example Proctor & Gamble Daily today at Capital Spreads today, at various times soon after opening:

105.51 - 105.79 (28)
105.09 - 105.16 (6)
102.30 - 102.55 (35)

Once I am in a position, if the spread changes, does it change in any set way (equally in either direction) or at the choice of the company.

What is the catch ?


Senior member
Imagine that has to do with the Capital Spreads house position. Will be more aggressive on bid if want to buy or offer if want to sell.


Its usually down to the head dealer on the desk. If the company is getting hammered on the stock, or there is poor liquidity, the spread will widen. This happens more so on open and close. One of the main reasons for this on open is to stop clients placing stops to close to the market.
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