OANDA spread on EURO 3.0
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Thread: OANDA spread on EURO 3.0

  1. #1
    What gives - Oanda's spread was unusually high this A.M. and 15 minutes following news it is still at 3 pips on EURUSD!!!

    That's higher than the spread on AUDUSD.

  2. #2
    Quote Originally Posted by ;
    You might want to rethink your private definition of news.

    Jean-Claude Trichet's ECB post-rates press conferences usually last just over one hourfrom 12:30 - 1:30 GMT and can be (as was the case today) major market-moving / volatility-spiking occasions, in direct reaction to what he is saying -- or not stating -- in any given moment.

    What could be exceedingly unusual would have been for Oanda to return to business as normal and for its spreads to return to normal in the time of the OP, when Trichet was just starting to warm up... on...
    I actually heard something from your post. Thank you. Your post was useful and enlightening, unlike the previous smug reaction.

    I apologize for my childish reaction.

  3. #3
    And you. I'm new to this. The spreads do not normally remain that broad for more than a few minutes - 15 minutes is a remarkably long time for news associated spread increases.

  4. #4
    vuctuTuctu
    Guest
    You may want to rethink your definition of news.

    Jean-Claude Trichet's ECB post-rates press conferences usually last just over one hour, from 12:30 - 1:30 GMT and can be (as was the case today) major market-moving / volatility-spiking events, in direct response to what he's saying -- or not stating -- at any given moment.

    What would be extremely unusual would have been around for Oanda to return to business as normal and for the spreads to come back to normal at the time of the OP, when Trichet was just beginning to warm up... on inflation, Greece, etc..

    Http://www.bloomberg.com/tv/ usually conveys such occasions live, while pre-empting routine Bloomberg TV programming. Closely viewing price action and listening to words as they are spoken could be enjoyable and... sometimes useful.

  5. #5
    Trichet might be talking, and volatility might be higher than normal, but spread is assumed to be based on bandwidth.

  6. #6
    NuSubistorcua
    Guest
    Typically most brokers widen spreads and delay execution time on major news events such as the ECB rate shift.

    Theoretically speaking though spreads should be contingent on liquidity directly tied to libor rates.

    BTW, I checked Oanda's disperse history of EURUSD and watched a high of 1.9 at the time of this release which then decreased to 1.3 - 1.2. Never watched 3 pips wide

  7. #7
    Quote Originally Posted by ;
    Typically most brokers widen spreads and delay execution time on major news events such as the ECB rate shift.

    Theoretically speaking though spreads should be contingent on liquidity directly tied to libor rates.

    BTW, I checked Oanda's disperse history of EURUSD and watched a high of of 1.9 in the time of the launch which then decreased to 1.3 - 1.2. Never watched 3 pips wide
    There have to be some tom foolery happening since I was at my screen as well as the disperse went to 10 for a bit then 5 mins inside was 5, 5 mins later it was 4 and 15 mins after the news that it was at 3. Ordinarily it widens to 10 for 1 min and then falls back to the disperse it was previous to the news statement.

  8. #8
    Quote Originally Posted by ;
    There must be a few tom foolery happening since I was at my screen and the disperse went to 10 to get a bit then 5 mins inside had been 5, 5 mins after it was 4 and 15 mins after the news it had been at 3. Normally it widens to 10 for 1 min and then falls back into the disperse it had been previous to this news statement.
    Like all brokers, there are some little tricks completed here and there in Oanda also. One of the things that I've noticed is that they are going to every now and then place their disperse at 0.8 or less. The times are odd because it's generally pre-Asian session or ancient Asian session when you would believe bandwidth is reduced with Europe and US closed (less people available to make the most of it). My idea is that they intentionally lower it to bring down the average spread for marketing purposes.

  9. #9
    Quote Originally Posted by ;
    Like all brokers, there are a number of little tricks completed here and there in Oanda also. One of the things I've noticed is that they will every now and then place their spread at 0.8 or less. The times are odd as it's generally pre-Asian session or early Asian session when you'd think liquidity is low with Europe and US shut (less people available to take advantage of it). My thought is that they intentionally lower it to bring down the average spread for marketing purposes.
    yes! Last night during the asian session the spread was 0.9 - when the spread is based upon bandwidth afterward are they intimating the asian session is the period when the most liquidity is accessible?

  10. #10
    Having been really intimate with Oanda within the last year and a half,
    that I have come to the conclusion that their practices have been less than
    fair annually.

    It could come in their own integration of MT4 (or any failing thereof).
    The way they manage their internal matching order book, their liqudity providers, or something else has changed... much to the disadvantage of the general retail client.

    Examples: May 4, 2011 (the day before Euro Bid rate announcement) 0.8 pip spread during US/London overlap.

    May 5, 2011 (Euro Bid Rate announcement afternoon ) 0.8 pip spread during London/US overlap

    May 6, 2011 NFP 1.0 pip spread during US/London overlap

    We've had nothing like this since (or earlier ) but yet.... For nowadays these states existed for complete sessions.

    They are tinkering... all that I can figure... is they understand the market can/will pay 1.2 pips spread as standard....with 1.5 pip or greater during volatility.

    Crazy things like the first poster mentioned doesn't surprise me.

    Things are shing, liqudity providers are becoming defeated by large frequency algorithms?
    . . .Or no one wants to be in the midst anymore... I do not understand.

    I rarely traded anything greater than 0.9 pips with Oanda for an entire year this past year.
    They have more retail accounts than ever before.
    They have attracted the use of MT4 to their customers.... Spreads should be reduced.
    They are not.

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