Has anyone noticed negative spreads before?

[miminoise]

I have lately seen some unwanted spreads and really acted on them that means the bid is greater than the ask. Basically you start the trade at a profit.

When I have noticed the spread do so it just lasts momentarily so that you do need to be marginally quick/lucky in order to pinpoint an entry like this. Anyone else have this happen? If so, what platform?

[amshavin66]

I wrote a tiny indior to track spreads on MT4, since I was curious if MT4 traders have these changes in spreads too. Astonishingly, on IBFX the disperse dropped down to zero on many pairs on 02/25/08 in 08:58:02 GMT

I know this happens on ECNs, but was shocked to see it happen in a dealer. I'm still confused as to the reason why. It only lasted of about a second, no actual time to acquire an order in on it, however.

[kimlsah]

Cool! Who is your broker?

[jesuah]

MB trading

[miminoise]

Cool! Who is your broker? FXCM think it or not.





Mbqb11,

Are you really saying you've noticed this as well?

[camvany]

It happens all of the time on ECN brokers, however whether it poses a valid arbitrage opportunity is another matter.

[miminoise]

I think I want to add that I do NOT think it is a good idea to put in a trade simply because you may start off a pip.

[elenela87]

Have you seen adverse spreads on other brokers? Sounds like an interesting concept.

[cmislimg86]

This morning / last night only after the German IFO came out, I had been visiting this occurring for a few momemts and it was 10-15 pips gap. I wished to take advantage of it but it freaked me out that I didn't (I just recently moved from MM to ECN and was not sure if I was really seeing what I was visiting).

I understand the concept, but has anybody actually taken advantage of this on a live account with MBT and what has been the consequence?
- do you actually end up pips up whenever the trade opens?
- does the fill actually occur anywhere NEAR the displayed price?

Thanks,
Bear

[amoka91]

Accurate interbank pricing has variable spreads, tight, and large, inverted....that is the brutality of the true market. Market makers don't show accurate pricing, ECNs do, why I select ECNs anyday.

[laumami18]

I never tried it, since its extremly risky. You cant use limit orders due to the possibility that only one side matches, leaving you with an open position through a high volatility period. If you use market-orders, you can get slippage way past 15 pips through news events. The risk far exceeds the potential gain in my view.

Maybe its potential with automation along with a server proximity alternative, but the costs involved with growing and maintaining such a solution are important, and possibly also high given that the available size during the duration of spreads.

As a rule of thumb, egies that involves arbitrage-like trading is a must for retail traders, since there'll always be someone with quicker market-access and reduced trading-costs compared to a retail trader with customer grade internet-connections,who does so, IF its worth it, particularly if it is this apparent arb like your example.

[cmislimg86]

Shrike

Thank you ... This was my idea also, but I had been anticipating a 40 movement in where the bid price was anyhow and the ask was 10 or so under that. I wasn't concerned with it not making any pips, but when MBT would enable the trade in any respect. I've personally had LIMIT orders open for a tp that gave me yet another 7 pips because it wasn't full on target. I really do see your risk point though and I guess that was part of the reason I froze looking at the screen (I typically don't trade news).

Bear

[iulayn]

This only happened to me as well on FXCM and that I that's how I wound up on this thread searching for the term negative spread it had been actually -0.9 on the EUR/JPY. I had been wondering, how is this even possible!!! I mean why can they give money to get into a position to you? I was awaiting a chance to get in with 15lots so that I did https://www.nigeriaforextrading.com/attachments/1526337482.png
Plus I had been waiting for the roll over so I had been up 6 pips so in almost no time!

[Megislmolulu]

I recall seeing negative spreads on MB Trading a while back.

Couldn't believe what I was seeing. Of course, it was a nightmare trying to do a transaction!

[miminoise]

This only happened to me too on FXCM and I that is how I ended up on this thread searching for the term negative spread it was actually -0.9 about the EUR/JPY. I was wondering, how can this even possible!!! I mean why can they give you cash to get into a position? I was waiting for a opportunity to get in with 15lots so I did https://www.nigeriaforextrading.com/attachments/1526337482.png
Plus I was waiting for the roll over so I was up 6 pips or so in almost no time! That's the thing, they do not have a reason to do it nor does it matter. It shows they do try to match the best bid with the best ask out of their feed which flows liquid price action in the various banks they deal with.

Its actually pretty refreshing to see in this match.

[pilisanchis]

Does one MT4 broker needed that happen?

[bmigisg]

Does any MT4 broker had that happen? https://www.nigeriaforextrading.com/attachments/1526337482.pnghttps://www.nigeriaforextrading.com/attachments/1526337482.pnghttps://www.nigeriaforextrading.com/attachments/1526337482.png

[guixxe1594]

Should you ever think that is happeneing in a MT4 broker, I suggest you double check to be certain you are not confusing the bid with the ask.

https://www.nigeriaforextrading.com/attachments/1526337483.png

[ShuangYi]

I've seen this a lot and taken good advantage of it. Once I made over $700 within a couple of seconds on EUR/AUD by simply clicking buy-sell-buy-sell-buy-sell a lot of times. There was a 20-something inverse spread for many seconds.

I've done it on other pairs also, and would say I've made in the thousands within a years' time. I really like it. I feel like I am beating the banks at their own game.

To an earlier poster that said doing so was exceptionally risky, well advised to Foreign Exchange dude. What isn't risky here?

Not going to reveal my own broker platform, but it's an ECN...I had someone tell me that my broker would wind up reversing those transactions, but that hasn't happened once. Love!! https://www.nigeriaforextrading.com/attachments/1526337483.png

[Gopi10]

I have seen this happen many times on FXCM, once I discovered it, it is when their unreliable platform ends up, and one facet of the price stinks, ie. Usdjpy ask price stuck at 106.50 while the market kept going up, state the bid price is 106.6 now, then the spread is -10pips, but from my experience the price is NOT tradable, it is going to provide me the order revoked, market moved message, however I didn't attempt it everytime, possibly sometime it'll work, but it will probably get reversed back anyway. . https://www.nigeriaforextrading.com/attachments/1526337483.png

[iulayn]

Well, just as a quick update guys. It has been happening a bunch on their micro platform recently. Likely because their spreads are lower to begin with. Last Wed. or Thur. ( I do not recall : ) It happened at least a dozen occasions in the session off hours. I managed to get in about 6 of those times(out and in) and was up 10 pips very quickly. No I am curious to see how long they will let me keep doing so https://www.nigeriaforextrading.com/attachments/1526337932.png

[Gopi10]

They probably don't care about it, since the money they're earning from people blowing up their micro accounts are far more than enough to cover your 10 pips at the moment. . Https://www.nigeriaforextrading.com/attachments/1526337933.png once they have ironed out other problems, they will come to get you... https://www.nigeriaforextrading.com/attachments/1526337933.png

[iulayn]

they most likely don't care enough about it now, since the money they're earning out of people blowing up their micro accounts are more than enough to pay your 10 pips at the moment. . Https://www.nigeriaforextrading.com/attachments/1526337933.png once they have ironed out other difficulties, they will come to get you... https://www.nigeriaforextrading.com/attachments/1526337933.png Hehe, thanks man. Today you'll have me looking over my shoulder for fxcm hit guys https://www.nigeriaforextrading.com/attachments/1526337933.png

. . .but they won't ever take me alive!!!! I'm barricading the home, ready to create a stand for liberty... and profit!

[Gopi10]

Haha... make decent use of this opportunity while it still exist, however, I am convinced fxcm won't be pleased when they ch up with you, most broker despise people that gets in and out from this market too quickly, they'll likely start sending you a warning very soon when they ch up with youpersonally, or close your account entirely, keep us posted anyway, very interested to know how much fxcm is going to need to start losing before they start taking notice... hehe... https://www.nigeriaforextrading.com/attachments/1526337933.png

[vaguva]

I remember seeing negative spreads on MB Trading some time back.

Could not believe what I was seeing. Of course, it was! I also saw that on MBT. I tried getting in twice with a micro lot to see what would happen. After, it didn't execute until it had been back to usual. The other time it filled in the higher bid price, not the lower (negative) ask price. Either way it didn't work.