Quick question on large spread vs small spread currencies?

Discussion in 'Forex' started by Gcapman, Dec 1, 2009.

  1. Gcapman


    Is it conventional wisdom that a currency pair with a larger *normal* spread (for example, AUDJPY 4 pips) less volatile than a smaller spread pair (for example GBP 1.5 pips).

    I feel that there is less volatility but wanted to get some thoughts from some of the more seasoned fx traders.


  2. AyeYo


    I'm pretty sure it's the opposite. The small spread pairs tend to have smaller moves. The larger spread pairs tend to have larger moves.
  3. It sure seems like it alot of the time.