Hi,
Just wondering, anyone have any idea how brokerages come up with the spreads for forex?
I have been watching the GBP / USD pair, and every now and then the spread get really wide, much wider than the standard 2.4/ 2.5 pips. At the moment it is 3.5pips. Does anyone know what determines the pip spread?
THanks
I don’t the formula or w/e, but spread is lowest during peak hours. During the London and New York trading hours is most likely the best. When its dead…like Sunday opening, then spreads can be as high as 10 for the EUR/USD…Differs through brokers as well…
Hi,
it depends on many factors, in case you have real ECN broker spread is based at international interbank market. (it depends at best bid and asks at the moment) Spread can go up to 20 - 30 pips in case big news coming out or some gap.