Why does the spread change?

i would like to know why the spread changes.

what do you mean by “why the spread changes” . during news announcements ? in normal market conditions ? can you please be more specific so that we can help you ? :slight_smile:

during normal market conditions

The spread is a function of two major things. One is liquidity. The more volume flowing through the market at a given time, the narrower the spread will tend to be. The other is the expectation of volatility. If traders expect a volatile market (as in the case of data releases, interest rate announcements, etc.) the spread will widen out.