Question - Forex Forexqna Fibonacci Chart +1

Understanding spread per time of day?

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8 Answers
Clifford Zimmerman
Answered 2 months, 1 week ago
<p id="isPasted">Market spread is highly variable throughout the day, primarily due to fluctuations in trading volume and liquidity. Spreads are generally tightest during peak market hours when activity is highest and widest during off-hours, around major news events, and overnight when participation is low.</p><p><strong>The Role of Liquidity and Volume</strong></p><p>The spread is the difference between the highest price a buyer is willing to pay (the "bid") and the lowest price a seller is willing to accept (the "ask").</p><ul><li>High Liquidity: When many buyers and sellers are active, orders are filled quickly, and the spread narrows (tightens).</li><li>Low Liquidity: When few …</li></ul>
Doyle Munoz
Answered 1 month, 1 week ago
<p id="isPasted">Understanding spread per time of day?</p><p>Forex spreads fluctuate significantly throughout the day, primarily driven by market liquidity and volatility. Spreads are typically tightest during peak trading hours when major financial centers overlap and are widest during quiet, illiquid periods (e.g., late at night or during market open on Sunday).&nbsp;</p><p><strong>Spread Dynamics by Time of Day</strong></p><p>The forex market operates 24/5 in a continuous cycle through four main sessions: Sydney, Tokyo, London, and New York.&nbsp;</p><p><strong>&nbsp;Market Session&nbsp; &nbsp; &nbsp; &nbsp; Local Time (Approx. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Liquidity &amp; Spread &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; …</strong></p>
Marjorie Hamilton
Answered 2 weeks, 3 days ago
<p id="isPasted">In trading, the bid-ask spread is directly tied to liquidity—the number of active buyers and sellers in the market at any given time. Because market participation fluctuates in predictable waves throughout the day, the cost of entering and exiting trades (the spread) changes accordingly.&nbsp;</p><p><strong>1. The Spread Cycle: General Rules</strong></p><ul><li>Opening Hour (Tightening Spreads): Spreads are often wide in the first few minutes as the market "finds" its price after overnight news. They typically narrow quickly as high volume and institutional activity flood in.</li><li>Mid-Day Lull (Widening Spreads): During the "lunch hour" (e.g., 11:30 AM – 2:00 PM ET or …</li></ul>
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