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Why do spreads widen significantly at certain times?

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Question
Why do spreads widen significantly at certain times?

Answer

This could be for a number of reasons: the market opening or closing, rollover time, macroeconomic event releases, public speeches by significant global leaders, pre and post-holiday periods and long weekends. All these things affect liquidity and cause spreads to widen. We don't interfere with liquidity at our end. We simply pass on the quotes we receive from our liquidity provider to you. If spreads widen, it is more than likely a result of one of the above reasons, or even a combination of them.


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Views: 255 Created on: Apr 26, 2017
Date updated: Apr 26, 2017

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