It depends on the broker provider and what your trading,if the broker gets it wrong on the risk and you get it right or if it hasn't been noticed because its some unknown stock.There is such a push on the popular names that the focus isn't on the unknown.If we are talking Eur/Usd the spread is very tight because everyone is trading it,even though its negative return,where as eur/mxn has a positive return.
Ohh, I've always wondered about that, actually. Thank you for explaining it.
Variable spread is adjusted on the following:
Higher than usual liquidity
[like news events. The quotes become 'out of price quotes', iow. the price you were quoted is already out of date due to high volatility, by providing a larger spread the margin of quote errors are reduced for the broker.]
Lower than usual liquidity
[The market is flat, like near dead. The broker increases spread to discourage trading on instruments it will find difficult to fill due to low liquidity, hence you will pay a premium to get filled.]
On brokers providing fixed spreads you will encounter more 'off quote' errors, as the broker will simply not fill orders on the above extremes.
As to the topic of the thread, I only look at the myfxbook news ticker and calendar to ensure that my account is within margin limits before an event. I do not specifically trade news events.
For every loss there should be at least an equal and opposite profit.