Variable spread brokers - do they manipulate Ask & Bid, or just one?

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Hi guys,

Just wondering if anyone knew for certain or can provide any insight. Variable spread brokers will change the spread in times of high volatility to protect their profits; my question is, do they push Bid and Ask apart, or do they only make Ask higher?

My reasoning was, if they manipulated Bid it would show up on the charts (which are just Bids) as noise, so it must only be Ask, but I really don't know for sure.

Can anyone shed any light?

Cheers, Paul. 

 
monsterer:

Hi guys,

Just wondering if anyone knew for certain or can provide any insight. Variable spread brokers will change the spread in times of high volatility to protect their profits; my question is, do they push Bid and Ask apart, or do they only make Ask higher?

My reasoning was, if they manipulated Bid it would show up on the charts (which are just Bids) as noise, so it must only be Ask, but I really don't know for sure.

Can anyone shed any light?

Spread = Ask - Bid  the spread changes when the difference between Ask and Bid changes,  this can be the Ask changing OR the Bid changing OR both.
 

I know what the spread is and how it works; I'm specifically asking about the way brokers manipulate the spread during times of high volatility.

Cheers, Paul. 

 
monsterer:

I know what the spread is and how it works; I'm specifically asking about the way brokers manipulate the spread during times of high volatility.

Cheers, Paul. 


mostly you get requote because the moment of ordersend and receiving broker price has changed more then slippage you allow  (high volatility.)

then you have to send again price is now higher  .....  with same situation until market calmes down..  and you succeed

like shopping if a shop advertise with an article like a tv and we can buy 5 tv's for 100$ each and 10 customers come for that tv then they can't get all that kind of tv for that price so the price moves fast at high volatility

 
monsterer: I know what the spread is and how it works; I'm specifically asking about the way brokers manipulate the spread during times of high volatility.
And he answered your question:
this can be the Ask changing OR the Bid changing OR both.
 

His answer was just about the nominal spread, not specific to broker manipulation.

If you're now saying brokers manipulate either or both; can I ask is it broker specific? Say, will Alpari manipulate both while Oanda only moves Ask for example?

Cheers, Paul. 

 
monsterer:

His answer was just about the nominal spread, not specific to broker manipulation.

If you're now saying brokers manipulate either or both; can I ask is it broker specific? Say, will Alpari manipulate both while Oanda only moves Ask for example?

Cheers, Paul. 

Moving spread reflects change in supply-demand. Before making accusations on a broker must begin by proving your statements.
 
angevoyageur:
Moving spread reflects change in supply-demand. Before making accusations on a broker must begin by proving your statements.

Its not an accusation, its simply a statement - understanding how a broker controls his profit would be a useful thing to know when deciding on an order strategy. I don't mind that it happens, I just want to understand how it happens.
 

When you registered, perhaps you missed the part about Any discussions except of concerning MetaQuotes Language 4 and auto trading are forbidden. You're off topic for this forum.

We are forbidden about talking specific brokers.

 
monsterer:

I know what the spread is and how it works; I'm specifically asking about the way brokers manipulate the spread during times of high volatility.

Cheers, Paul. 

If you let me know the answer you would like to be given I can type it right back to you so you can be happy . . .
 
monsterer:

You managed to irritate WHRoeder and RaptorUK, not good for you ;-)
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