This thread is getting mad again... :)@MyFxTrader
, Yes, this is a covered gap up!@ahuruglica
, I think @MyFxTrader
understood what you are talking about....@AmberLynn
.... YES! There are GAPS in Forex... they are gaps, they are NOT spread widening, they are NOT spikes... they are GAPS! Stop pretending that you know everything when you actually know a little more than nothing...
In theory, in Forex, no gaps should exist... even the weekend gaps are not really gaps it is simply that brokers are closed during weekends and when they open they miss some transactions that occurred during the weekend...
In reality, however, gaps exist in forex, too! They may occur when brokers are closed, but they may also occur when the markets are open... it's about liquidity... even if you have a TRUE ECN provider as @AmberLynn
suggested you will still get gaps and I don't mean to surprise you if you trade directly with a liquidity provider (such as Saxo or Citi), you can still get gaps... There are times when liquidity does not exist between liquidity providers and these times available funds get distributed by priority, so you get a gap!@AmberLynn
, I know you don't believe me... and you need proof... so... open an 1M chart of low liquidity currency... such as USD/HKD you will notice that even in normal trading hours, without any extraordinary event, prices are gaping 1-2 pips...
The picture above is from my broker... check it in your broker and post it here... I suppose that you, as a professional trader, you are using a TRUE ECN broker! Right?
, before trying to find an excuse.. keep in mind that the chart above is from MT4 which shows only BID prices, any spread widening would have change the ASK price not the bid price, so those little gaps are not due to spread changes...