Why is the spread different at different times?
The gap between the buying and selling prices, called the spread, can become wider or narrower throughout the day. It may widen when prices move quickly or fewer buyers and sellers are active, such as around major news releases or market openings and closings.
Which market conditions can widen the spread?
Spreads may widen during:
- Major news releases: Prices can move quickly as the market responds to new information.
- Market openings or closings: Changes in trading activity and available liquidity can affect quoted prices.
- Periods of reduced liquidity: Less available buying and selling interest can increase the difference between Bid and Ask prices.
Why might my spread differ from another quoted spread?
Check that you are comparing the same:
- Product: Different products have different pricing and liquidity.
- Account type: Spread conditions may differ between account types.
- Time: A website quote or an earlier platform quote may differ from the prices available at execution.
How can I check the spread before placing a trade?
- Find the product in MetaTrader 4 or MetaTrader 5.
- Check the current Ask price and Bid price.
- Calculate the difference:
- Spread = Ask Price − Bid Price
The spread can change between checking the quote and execution. The applicable spread is based on the Bid and Ask prices at execution.
