Well here we go again with the great spread controversy. Please look at the attachment, where would you get filled, this is a news gap, so you would have had to have been in well before the news came out.
Now first of all spreads do not widen with high volume but with low volume, that is why the MXN has a 100 pip spread, no liquidity.
Now as everyone knows I use CurreneX, and before news the spreads do not widen, but they actually bounce up, down, up, down etc. as the banks pull and place orders, if the order is not filled within seconds or milliseconds, it is pulled so as not to get filled way outside. Now this deal with the spreads widening to 20 or whatever, is an artificial function of an Al Gore rhythm, and not a natural market condition. In other words the Al Gore rhythm is timed to widen the spread artificially, the spread also may depend on the volatility. Now I have been slipped as high as 9 but I know some pros that have been slipped as high as 15, that is life if you trade news.
The thought of trading news comes from the good old days of guaranteed stops and entries. Many who are looking to continue this are generally not aware that the liquidity for these guarantees came from in house inventory and not because one platform executed faster than another. Frankly Rookies, those days are long gone, so you need to find a more productive strategy.
The Ever Strep Throat Laden VIPER
