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.