How Was Your Forex Broker’s EURUSD Spreads During Last Week’s ECB Meeting?
- Using data from TradeProofer, a new community that monitors spreads and executions for crowdsourced analysis, we get to see how broker spreads reacted in the moments before and after last week's ECB Meeting.
A week after the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term world turned upside down due to the Swiss National Bank removing its peg on the EUR/CHF exchange rate, the market braced itself for more Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term as the ECB was set to meet last Thursday. Prior to the meeting, nearly every major broker either temporarily increased margins or warned their clients about pending activity. The anxiety prior to the event ultimately was with merit as the EURUSD sank to eleven year lows, with prices dropping below 1.1200 on Friday from a previous level of above 1.1600 on Thursday.
But how were trading spreads during the meeting for the EURUSD from forex brokers?
Using data provided to Forex Magnates from a new trading community called TradeProofer, we get a glimpse of how broker spreads reacted to the move. The data comes from TradeProofer users who connect the spreads and execution of their MetaTrader 4 accounts to the community for analysis. Using the data, TradeProofer provides crowdsourced broker spread and execution analysis which members can use to determine the execution quality of the broker.
In this first image, we get to see spreads move in real time right before and after the ECB released its prepared stated at 12:45 GMT. The x-axis are EURUSD spreads and the y-axis is the amount of brokers quoting each spread point.
In this image, we get average spreads during the 12:40-12:49 period from brokers being tracked by the TradeProofer community network. (click to enlarge)
A week after the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term world turned upside down due to the Swiss National Bank removing its peg on the EUR/CHF exchange rate, the market braced itself for more Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term as the ECB was set to meet last Thursday. Prior to the meeting, nearly every major broker either temporarily increased margins or warned their clients about pending activity. The anxiety prior to the event ultimately was with merit as the EURUSD sank to eleven year lows, with prices dropping below 1.1200 on Friday from a previous level of above 1.1600 on Thursday.
But how were trading spreads during the meeting for the EURUSD from forex brokers?
Using data provided to Forex Magnates from a new trading community called TradeProofer, we get a glimpse of how broker spreads reacted to the move. The data comes from TradeProofer users who connect the spreads and execution of their MetaTrader 4 accounts to the community for analysis. Using the data, TradeProofer provides crowdsourced broker spread and execution analysis which members can use to determine the execution quality of the broker.
In this first image, we get to see spreads move in real time right before and after the ECB released its prepared stated at 12:45 GMT. The x-axis are EURUSD spreads and the y-axis is the amount of brokers quoting each spread point.
In this image, we get average spreads during the 12:40-12:49 period from brokers being tracked by the TradeProofer community network. (click to enlarge)