Impact of market conditions on spreads

OANDA offers dynamic spreads, which automatically adjusts to real time market conditions and provides bid and ask rates at the time of inquiry. To learn more about our spreads, or to view our current live spreads visit our website.

Rate volatility and changes in global market liquidity can result in large spread increases in the market following news announcements, around market openings and closings, and during times of uncertainty. At such times, OANDA’s spreads will widen to reflect market conditions.

How market volatility can affect your take profit and stop loss orders?

When markets are volatile, spreads tend to widen, and rates can change rapidly and even gap. A gap occurs when the price of a financial product moves rapidly, up or down with little financial trading between the price movements. Since take profit and stop loss orders are triggered on the bid and ask prices, a higher spread that pushes the bid and ask prices further apart from each other, could trigger and execute your take profit and stop loss orders.

Spread is variable based on market conditions

As OANDA’s spreads are dynamic in nature, you might want to consider historical max spreads when deciding where to place your order.

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