Variable spread brokers - do they manipulate Ask & Bid, or just one? - page 2
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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.
I'm not talking about specific brokers, I'm asking whether a given behaviour is broker specific. That's a big difference.
Additionally, the way in which Ask and Bid can be altered at different times of day, or due to news events is directly relevant to auto-trading and MT4 and in fact affects everybody using the platform.
I'm sorry if this question 'irritates' the moderators, that was not my intention, I'm just trying to understand the inner workings.
Cheers, Paul.
You managed to irritate WHRoeder and RaptorUK, not good for you ;-)
I'm not talking about specific brokers, I'm asking whether a given behaviour is broker specific. That's a big difference.
Additionally, the way in which Ask and Bid can be altered at different times of day, or due to news events is directly relevant to auto-trading and MT4 and in fact affects everybody using the platform.
I'm sorry if this question 'irritates' the moderators, that was not my intention, I'm just trying to understand the inner workings.
Cheers, Paul.
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.
I can relate to this question somewhat during my noobie days. You're looking at the charts which you've now discovered is just Bid_Charts. You're thinking ok so variable spreads brokers sometimes must increase the distance between the Ask and the Bid. Then you think ok, I already know what the Bid is therefore the broker must be moving the Ask in-order to increase the spreads.
Well RaptorUK already answered your question & deVries expanded with why. The broker can move both or just one of them. You however only see one side of the moon and cannot fully explain the spreads by just looking at bid_charts. For example, you have a very tall period_m1 bar. The Bar_High (or slightly above) is where Ask started and stayed throughout the minute. However the Bid kept falling and falling. If the bar_height is 50_pips then spreads increased by approx 50_Pips.
Looking at a Bid_Only chart and without spreads information per tick, no-one re-construct how it played out. How the brokers chooses to move their spreads is their business and would differ from broker to broker. If they're MANIPULATING spreads with some pattern then someone is bound to notice and profit from it. <--Hence reason for your question. If the broker only moves the Ask like you're thinking then everyone and their grand-momma would be selling into high volatility. You Sell@Bid and wait for the raise in Ask, then close the deal 50_pips higher at Ask (using above example again).
As for the rest, MANIPULATING? Nah, 99% of that is just Bad_Traders. Ttyl.