Thread: Has anyone noticed negative spreads before?

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.

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

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
Plus I had been waiting for the roll over so I had been up 6 pips so in almost no time!

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!

Originally Posted by ;

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
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.

Does one MT4 broker needed that happen?

Originally Posted by ;

Does any MT4 broker had that happen?

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.

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!!

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. .