What causes the variation in spread?

Discussion in 'Forex Trading' started by IronFist, Dec 31, 2007.

  1. I just logged into my Oanda practice account and the smallest spread is 10 pips now. Usually it's like 1.2 or .9 or something for EUR/USD. Why is it so high? Is this normal across all brokers?

    I looked at the average spread charts on oanda.com and it seems like that's pretty normal for a Monday. Does it always vary by day like this?

    http://fxtrade.oanda.com/spreads/recent_spreads.shtml

    When my profit targets are usually like 10-15 pips should I just sit out on days when the spread is so high?
     
  2. lrm

    lrm

    Spreads fluctuate with liquidity. OANDA is probably raising spreads today because it tomorrow is a holiday.
     
  3. cstfx

    cstfx

    weekend spreads.
     
  4. I see. Thanks. Is that an update they send to their members?
     
  5. cstfx

    cstfx

    Yes.

    BTW, Oanda bumps the spreads every Fri @ 345 and keep them in effect until Sunday 8pm. If you are holding over the weekend, you could get hit coming into the new week with those wide spreads, so either don't trade into the weekend (a no brainer) or loosen those stops.