Cryptocurrency Q&A
Why is OANDA spread so high?
Why is OANDA spread so high?
BenjaminMoore
Sun Oct 13 2024
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7 answers
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I'm noticing that the spreads on OANDA seem unusually high compared to other platforms. I'm wondering what could be the reason for this as it's affecting my trading costs.
7 answers
SumoPowerful
Mon Oct 14 2024
Spreads, which represent the gap between the price a buyer is willing to pay and the price a seller is willing to accept, tend to broaden at specific times during market hours.
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GwanghwamunPride
Mon Oct 14 2024
When spreads widen, it becomes more difficult for traders to execute transactions at favorable prices, potentially leading to slippage or the inability to exit a position altogether.
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ZenMindfulness
Mon Oct 14 2024
One such instance is immediately before the closure of financial markets, as traders begin to unwind their positions and liquidity diminishes.
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HanjiArtist
Mon Oct 14 2024
Moreover, widened spreads can inadvertently trigger stop-loss orders, automatic trades designed to limit losses, as the market moves rapidly in response to decreased liquidity.
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Caterina
Mon Oct 14 2024
Additionally, upon the reopening of markets, spreads may widen due to a similar decrease in trading activity as traders assess market conditions.
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