It's normal for the bid-offer spread
to widen when the markets get volatile
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Last update : July 2010
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| Yes, it's how markets work and it's not just the spread betters that widen their prices. All spreads in volatile markets normally get pushed out to compensate for the risk.
I can remember in 1992 when the UK entered the Exchange Rate Mechanism (ERM), the bid offer spread on the FTSE 100 futures widened to about 30 points at one stage. In the stockmarket crash of 1987 it would have been similar.
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| And likewise when the stockmarkets were being hammered in 2008/2009 the FTSE spread would not have always have been 1-2 points (during the day).
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| The importance of getting the right spread bet broker |
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There are good spread bet brokers and bad ones. Having a good broker won't guarantee you profits but a bad broker will probably lead to losses as a combination of their gamesmanship and suspect software takes its financial toll.
So who do I recommend? Simple, the 2 brokers I personally use for my own spread betting. Read this page for more details.
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FREE Report - How to Learn Spread Betting and Prosper
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How to build the all-important trading experience
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Where to get trading help and advice
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Which broker to use and why
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Simple 2 month training plan to follow
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Download the FREE report |
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Read more in the Spread Betting section:
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