OANDA widens EUR/USD spread to 20 pips ahead of NFP

I have a screenshot I will post it later.
I didn't see the spread widen either I
wasn't looking actually . I got filled then liquidated in about a minute just before NFP it took me a few minutes to understand what happened .


This is not the first time I see fishy stuff on this platform. Nothing like some other dealers but I am sick of getting screwed.
I should be long EUR/USD now.
 
TRADE GLOBEX TRADE GLOBEX TRADE GLOBEX

That's not to say you can't get screwed by natural volatility before big reports coming out, but when your broker controls the quotes they adjust before giving you a market to trade, what do you expect?
 
Quote from illiquid:

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That's not to say you can't get screwed by natural volatility before big reports coming out, but when your broker controls the quotes they adjust before giving you a market to trade, what do you expect?
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Completely agree. I do! :) I will have to pull Oanda demo back up, last time I checked the track hand and hand with currency futures.
 
Keep the rate table visible, use minmax chart, keep bid ask quote lines visible. Use any or a combination of these.

Entered at 2825 closed at 2905 minus spread (5 to open, 2 to close), healthy profit. Held it because I knew to wait for a push for the option barrier at 2900.
 
Quote from rhymeswithorang:

No, no, keep trading Oanda with all the other losers with 5K accounts.
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Why does this bug you so much? you act like a such big shot but you offer f all in the way of calls from what I can see. Let me guess, you once lost a 100k of mummies estate? Perhaps you should learn to get over it and oanda.
 
Quote from Wallace:

Oanada spreads:
http://fxtrade.oanda.com/resources/spreadstats/spreadsminmax.shtml
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Look at the AUD/USD spread on Tuesday 1/8 was 20 pips, while normally 10 pips.

My theory is Oanda's spread is the cost of risk management (such as guaranteed stop loss) I pay happily for my trades. My guess is this cost probably is clsoely related to options volatility. Very likely higher volatility (due to whatever causes whether we know/ understand or not) on options would automatically produce higher spread at certain time. Just 2 cents.
 
A couple of points.

I don't believe there's any retail fx broker who guarantees fixed spreads, they usually asterisk 'fixed spread' if stated on their site/contract — 'dependant on market conditions'.

Economic releases Price Movement is a result in part of how close/distant the 'consensus bets' are to the 'actual' data.
While some try to trade the actual release or soon after, one 'should' be trading the PriceTime Movement, not the release.
Being correct or not about the released data can be protected with a Stop.

Perhaps because some/many fx traders have no experience trading other markets, they're unaware of the price action than can occur with releases — until after the fact, that pip to pip progression disappears in 'fast' markets.
The gold futures market for instance can price jump 10-30-50 $ without intermediate prices being touched, up and down, and without orders/Stops being filled as the 'news' blows through prices.

More important if trying to trade releases is that the order entry platform doesn't freeze/lock and the charting program/feed keeps up with and records the price action.

Oanda is very upfront about its spreads, hence the page it created to record spread data.
 
via: Barry Vincent: MetaTrader_Experts_and_Indicators@yahoogroups.com
" email from interbankfx on the FMOC meeting:
" Here is copy that interbank sent me explaining that if there is a gap you will not get a fill with your order, I think that is what he was saying. Barry.

" Dear Interbank FX Customers:
US: FOMC Meeting Announcement
Release time: Aug 8, 2006 - 2:15 PM EDT!
Take a look at our new Economic Calendar - http://www.interbankfx.com/economic_calendar.php
And watch the news releases in real time from your platform.

The Federal Open Market Committee consists of the seven Governors of the Federal Reserve Board and five Federal Reserve Bank presidents. The FOMC meets eight times a year in order to determine the near-term direction of monetary policy. Changes in monetary policy are now announced immediately after FOMC meetings.

The consensus estimate of industry analysts for tomorrows meeting is for the FMOC to “Pause” their over 2 year campaign in raising rates, and leave the fed funds rate at 5.25%.

As with all significant economic releases there could be significant price volatility with this announcement. Currency spreads will typically widen just before the release and will remain wide for a few minutes after. If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly. For example the price on the EURUSD trading at 1.2820 - 1.2822 just before the release could gap up 60 pips to 1.2880 -1.2882, without any prices available between the price of 1.2820 and 1.2882. A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price after the But Stop is triggered. Which price could be significantly higher than the original Entry Buy Stop Order of 1.2830. The same is true with a Sell Stop.

Some four years ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-farm payroll announcement. While this is an extreme example, this is what is possible with trading during economic announcements.

I would like to thank you for your continued support and wish you success in your trading.
Best Regards, Todd B. Crosland Chairman and President Interbank FX."
 
Quote from Wallace:


As with all significant economic releases there could be significant price volatility with this announcement. Currency spreads will typically widen just before the release and will remain wide for a few minutes after. If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly. For example the price on the EURUSD trading at 1.2820 - 1.2822 just before the release could gap up 60 pips to 1.2880 -1.2882, without any prices available between the price of 1.2820 and 1.2882. A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price after the But Stop is triggered. Which price could be significantly higher than the original Entry Buy Stop Order of 1.2830. The same is true with a Sell Stop.

Some four years ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-farm payroll announcement. While this is an extreme example, this is what is possible with trading during economic announcements.
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How about any trader's stop loss encountering price gaps when trading with futures or ECN, that could possibly cause a huge loss? :confused:
 
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