What is liquidity, and why do spreads widen?
Liquidity is how easily you can trade without moving the price. When liquidity thins — overnight, around holidays, during news — spreads widen because market makers demand more for the risk.
Post your observations:
- the widest spread you've seen, and when
- which times of day your pairs spread the most
- how you avoid the worst moments
The bid, ask and slippage guide explains the mechanics.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
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