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Spread futures (versus forex)


#1

Hello,

I want to ask please if the spread on futures is constant always. In forex it occurs always that the spread gets larger in certain conditions.

Is the spread on futures between ask and bid always the same?

Thank you
Tony


#2

@Tony_op thank you for this good question. As oppose top FX cash where the spread depends on the liquidity provider, the spread on regulated exchanges is govern by the exchanges themselves by strict rules.

You will often find that most spreads stay the same and on many liquid contracts its one tick difference (ES,6E,etc), however there could be times where the spread changes to to surprise economic announcements, global political events and flash crashes, etc.

Events as such, although extreme, not only affect spread but liquidity. It is advised not to trade during such times despite perceived opportunities that can present themselves.

Matt


#3

Thank you.

Best
Tony