Ask < Bid

Discussion in 'Forex Brokers' started by chuzek, Sep 2, 2010.

  1. chuzek


    I've been noticing that at certain instances the ask price is less than the bid price. What does this mean and is it a regular occurrence? Or is it a glitch in the quotes that I am receiving?
  2. Don't use them, they are a bucketshop.
  3. Its called "shading" the market.
  4. LeeD


    I have never heard this term. Can you explain how "shading" works?
  5. chuzek


    So are you saying that this is not a technical glitch?

    I looked up the term "shading" the practice of brokers manipulating prices seems to be common. ( However, it makes no specific mention brokers creating a negative spread. Wouldn't they lose money by doing so??

    Is it possible to actually purchase a currency when the ask price dips below the bid price?