Spread Reminder

[brooky29]

Hi all.

Saw this today and thought it might be explain a few head scratchings when you have had a trade that WAS going somewhere and then mysteriously got stopped out leaving you saying WT_Insert Expletive Here :-)

Scenario:

I am short USDCHF and showing profit.

Price action going down = more profit.

Wrong.

Price action going down was showing Less profit.

I went and had a look.

OOOHHH

AAAHhhhh

Mystery explained.

Spread does matter.

Cheers

Brooky

[riffster]

Swiss Central Bank

Yep, you can thank the Swiss Central Bank for those spreads. Whenever a central bank "intervenes" in the market, the spreads on their currencies crosses get crazy. The Swiss Central Bank is not fooling around either. They have been throwing yards of currency at the market.

Better to buy the dips on the CHF pairs rather than trying to time the consolidations.

[rick111]

Try to stick to more liquid pairs.

This is the reason I only trade EURUSD and GBPUSD.

Cheers

Ryan

[Jefftimothy]

spread

Spread is very important in forex trading which is imposed by the broker. I always like to trade with low spread currencies like EURUSD, GBP/USD, USD/CHF. actually most of major currency pairs have low spread and it is true for maximum brokers. I think 2 pip spread is perfect for EUR/USD.