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Old 08-06-2008, 02:15 PM
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Default Forex currency pairs

I have a question regarding currency pairs. Maybe someone can answer it. Why do some currency pair spreads jump like crazy from one spread like 7 to a spread of 21 within seconds?
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Old 08-06-2008, 03:31 PM
Simit Patel's Avatar
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what currency pair are you trading? that is often an issue. major currency pairs -- EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD, AUDUSD, NZDUSD -- generally have smaller and more stable spreads. more volatile currencies that have less liquidity may be prone to wider or more volatile spreads, as there is more market making risk with them (meaning there is greater risk for the market maker finding buyers and sellers they need).

it could also be an issue with your broker, or whoever you're trading with.

hope that helps.

-- simon
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