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why brokeds change spread all the time ??

DrVodka
Apr 15 2013 at 01:55
297 posts
why they do it ? i know its they money , but why change it ever second ? just wondering

dunkdenk
Apr 15 2013 at 05:55
85 posts
It depends with the liquidity on the market

Tom153
Apr 15 2013 at 17:33
4 posts
I believe that brokers’ spreads change because they are affected by market liquidity at any given time. It’s worth noting that spreads can become wider during certain periods – such as just before markets close on Fridays, during major news events, and during holiday seasons (there is lower liquidity when market activity is low). The broker I trade with has really low spreads...I’d say some of the lowest in the industry, so that makes a big difference during normal trading periods. In general, look for a broker with low spreads and then be mindful of popular trading hours and news events (consult an economic calendar).

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