Floating spread
For a EUR 10,000 position, an assumed EUR/USD spread increases from 0.8 to 3.0 pips. An immediate round trip at unchanged corresponding quotes would cost USD 0.80 or USD 3.00 respectively in price terms. This excludes other charges and is not a promised spread range.
Variable pricing
The Ask–Bid difference can change with quote availability, risk, provider markups and market conditions. Active hours may bring tighter quotes, but the smallest advertised spread is not the average or a guaranteed maximum. A variable spread does not identify whether client exposure is hedged externally.
The relevant quote side
A spread can widen through a falling Bid, a rising Ask or both. An Ask-based trigger can activate without a corresponding Bid-chart touch. Marking an open position at its closing quote can also change equity when the midpoint barely moves. Record both prices before diagnosing the effect.
Evaluate the distribution
Measure actual typical and stressed spreads at the trading times and sizes being considered. Include commission, financing, conversion, rejected requests and fills consistently. If the result uses actual execution prices, their spread contribution is embedded; deducting another spread overstates costs. Compare equivalent data sources and timing.
FAQ
Must floating spreads widen by a fixed multiple during news?
No. The response depends on the instrument, source and event; no universal multiplier applies.
Is a floating spread always cheaper than a fixed spread?
No. Compare actual total costs and the contractual conditions for the same trading activity.
