I need help with an abnormal EURUSD spread surge outside of trading hours!!!
Dec 18, 2024 at 08:15
Vistas 72
4 Replies
Dec 18, 2024 at 08:15
Hello everyone, I recently experienced an issue with my broker regarding an abnormal spread spike on the EURUSD pair, and I need advice or insights from the community.
Here are the details of the situation:
1. My broker's typical spread for EURUSD is around **2.7 pips**.
2. On the MT4 platform, between **23:59 and 00:02** (server time), the broker restricts trading.
3. However, during this period, I noticed that the spread increased abnormally to as high as **20–23 pips**.
4. There were no **geopolitical events** or **economic news releases** at that time that could justify such an increase.
5. It was also **not during Monday's market opening**, which might normally explain wider spreads.
I contacted the broker about this issue, and they asked me to provide comparative spread data from other brokers during the same period. Unfortunately, as most of you know, individual clients like me cannot easily access historical spread data from other brokers.
### My Questions: 1. Is there any tool, platform, or indicator that allows gathering **historical spread data** for EURUSD from multiple brokers? 2. Has anyone else encountered a similar issue where spreads spike unreasonably during restricted or non-trading hours? 3. What would be the best approach to address this issue with my broker? I would appreciate any insights, advice, or guidance you can share. Thank you!
Here are the details of the situation:
1. My broker's typical spread for EURUSD is around **2.7 pips**.
2. On the MT4 platform, between **23:59 and 00:02** (server time), the broker restricts trading.
3. However, during this period, I noticed that the spread increased abnormally to as high as **20–23 pips**.
4. There were no **geopolitical events** or **economic news releases** at that time that could justify such an increase.
5. It was also **not during Monday's market opening**, which might normally explain wider spreads.
I contacted the broker about this issue, and they asked me to provide comparative spread data from other brokers during the same period. Unfortunately, as most of you know, individual clients like me cannot easily access historical spread data from other brokers.
### My Questions: 1. Is there any tool, platform, or indicator that allows gathering **historical spread data** for EURUSD from multiple brokers? 2. Has anyone else encountered a similar issue where spreads spike unreasonably during restricted or non-trading hours? 3. What would be the best approach to address this issue with my broker? I would appreciate any insights, advice, or guidance you can share. Thank you!
Miembro desde Nov 23, 2021
posts 19
Dec 18, 2024 at 08:35
your typical broker should have 0 spread on normal working condition ..on major currency pairs although that changes considering type of trading session..or market hours or in the event of news releases..
one thing with spread is that the broker tends to widen spreads in events where the volatility is low in order to hedge against sudden price movements and during event of high volatility.
the case on day close that usually takes place for some minutes on currencies and even hours for commodities like gold and indices or stocks ..and that market shift spreads also widens because the market can open in huge gaps..
i think what you're supposes to do is ask for your brokers working hours schedule because others do info traders of events schedules like when is the market closing ..opening in individual assets ...carry trades and how much you get to incur ..spread differential min and max on individual assets or just migrate to commision based account which rebates on lots traded which have zero spreads..
so you can be able to adjust your trades accordingly ..last make a research on spreads comparison and choose which one suits your trading style
one thing with spread is that the broker tends to widen spreads in events where the volatility is low in order to hedge against sudden price movements and during event of high volatility.
the case on day close that usually takes place for some minutes on currencies and even hours for commodities like gold and indices or stocks ..and that market shift spreads also widens because the market can open in huge gaps..
i think what you're supposes to do is ask for your brokers working hours schedule because others do info traders of events schedules like when is the market closing ..opening in individual assets ...carry trades and how much you get to incur ..spread differential min and max on individual assets or just migrate to commision based account which rebates on lots traded which have zero spreads..
so you can be able to adjust your trades accordingly ..last make a research on spreads comparison and choose which one suits your trading style
THE GOAL ISNT TO BEAT THE MARKET RATHER TRYING TO HAVE AN EDGE IN IT.
Miembro desde Dec 17, 2024
posts 32
Dec 26, 2024 at 11:19
antonyngari posted:
your typical broker should have 0 spread on normal working condition ..on major currency pairs although that changes considering type of trading session..or market hours or in the event of news releases..
one thing with spread is that the broker tends to widen spreads in events where the volatility is low in order to hedge against sudden price movements and during event of high volatility.
the case on day close that usually takes place for some minutes on currencies and even hours for commodities like gold and indices or stocks ..and that market shift spreads also widens because the market can open in huge gaps..
i think what you're supposes to do is ask for your brokers working hours schedule because others do info traders of events schedules like when is the market closing ..opening in individual assets ...carry trades and how much you get to incur ..spread differential min and max on individual assets or just migrate to commision based account which rebates on lots traded which have zero spreads..
so you can be able to adjust your trades accordingly ..last make a research on spreads comparison and choose which one suits your trading style
I think a lot of traders underestimate how much spread widening in high volatile or low liquidity markets can affect the trades. How do you manage your positions when the spreads suddenly widen?
Miembro desde Nov 23, 2021
posts 19
Dec 26, 2024 at 20:21
janet_brooks1 posted:antonyngari posted:
your typical broker should have 0 spread on normal working condition ..on major currency pairs although that changes considering type of trading session..or market hours or in the event of news releases..
one thing with spread is that the broker tends to widen spreads in events where the volatility is low in order to hedge against sudden price movements and during event of high volatility.
the case on day close that usually takes place for some minutes on currencies and even hours for commodities like gold and indices or stocks ..and that market shift spreads also widens because the market can open in huge gaps..
i think what you're supposes to do is ask for your brokers working hours schedule because others do info traders of events schedules like when is the market closing ..opening in individual assets ...carry trades and how much you get to incur ..spread differential min and max on individual assets or just migrate to commision based account which rebates on lots traded which have zero spreads..
so you can be able to adjust your trades accordingly ..last make a research on spreads comparison and choose which one suits your trading style
I think a lot of traders underestimate how much spread widening in high volatile or low liquidity markets can affect the trades. How do you manage your positions when the spreads suddenly widen?
-i tend to avoid trading the news prior to actual release time or after say 15 min after: with knowledge there is no other bigger announcement will precede the one before.
- if i have no existing trade.this way i can avoid catching spikes or order being filled in the wrong direction with a wider difference than usual.
-having a strategy that is sound and associate with less exposure in risk management respect like when you approach low volatility session like tokyo.sydney you know very well that with orders get filled at a wider spreads plus movements which is usually slow.so having low time frames trades scalp will be costly because to balance your trade in those session a single trade can last the whole session with less movement so so if the strategy is to get in get out
you will find that you raking compounded spreads and commission compared to sessions with high volatility.
it boils down to timing and creating a trading style that either it does not compound much losses..n let your winners run in profit in that profit cater for spreads and commission..
over trading also is killer..especially if you're aggressive in personality ..you'd want a strategy that limits how many trades you hold in open position..how many trades you're willing to lose in a day ..in percentage wise.for me a drawdown more 5% a day (i do max 2.5%) will be extreme because your risk of ruin become so high to manage your bankroll before you blow it..
THE GOAL ISNT TO BEAT THE MARKET RATHER TRYING TO HAVE AN EDGE IN IT.
Hace 19 horas
janet_brooks1 posted:antonyngari posted:
your typical broker should have 0 spread on normal working condition ..on major currency pairs although that changes considering type of trading session..or market hours or in the event of news releases..
one thing with spread is that the broker tends to widen spreads in events where the volatility is low in order to hedge against sudden price movements and during event of high volatility.
the case on day close that usually takes place for some minutes on currencies and even hours for commodities like gold and indices or stocks ..and that market shift spreads also widens because the market can open in huge gaps..
i think what you're supposes to do is ask for your brokers working hours schedule because others do info traders of events schedules like when is the market closing ..opening in individual assets ...carry trades and how much you get to incur ..spread differential min and max on individual assets or just migrate to commision based account which rebates on lots traded which have zero spreads..
so you can be able to adjust your trades accordingly ..last make a research on spreads comparison and choose which one suits your trading style
I think a lot of traders underestimate how much spread widening in high volatile or low liquidity markets can affect the trades. How do you manage your positions when the spreads suddenly widen?
I use a spread filter. I trade with algo gbp/usd and aud/usd both have a built in spread filter set to 2.(I can change though to any number) Usualy the spread is below 2pips. I use this method when opening trades however when I have a position and I want to close it, I dont use the filter.
Qui non proficit deficit
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