ryanair737

Hi KoketsolG I have posted my own query also today regarding spreads but recieved no response. Can you please advise on my post. Posted 51 minutes ago I'm hoping someone can help me to understand what causes huge spikes in the spread and how best to trade and avoid being caught out in them. I've attached some screenshots of Wesfarmers LTD, a stock in the ASX. When you look at the ask price for 11am 04.12.2023 there is a massive spike in price however the bid price barely moves at all. This would have wiped out any short positions and possibly wiped out their entire account as it would have gapped past their stop and then been executed. There is no increase in volume and the market had already been open for one hour before the price change. There was also no earnings or other factors that I can find online which would explain the price move. Can anyone in the forum please help me to understand what the reason is for these type of fluctuations in the spread that only last a minute or so? I've attached screenshots of the bid/ask price for the daily and the 5-minute range. Thanks

I'm assuming that you are refering to 10pm UK time. At that time all of the major markets are closed and there will be a big increase in the size of the spread. Your chart is most likely showing the mid price. If you change it to the ask price, its up beside the time interval toggle. You will see that price did hit that level around that time.

I'm hoping someone can help me to understand what causes huge spikes in the spread and how best to trade and avoid being caught out in them. I've attached some screenshots of Wesfarmers LTD, a stock in the ASX. When you look at the ask price for 11am 04.12.2023 there is a massive spike in price however the bid price barely moves at all. This would have wiped out any short positions and probably wiped out their entire account as it would have gapped past their stop and then been executed. There is no increase in volume and the market had already been open for one hour before the price change. There was also no earnings or other factors that I can find online which would explain the price move. Can anyone in the forum please help me to understand what the reason is for these type of fluctuations in the spread that only last a minute or so? I've attached screenshots of the bid/ask price for the daily and the 5-minute range. Thanks T

I'm hoping someone can help me to understand what causes huge spikes in the spread and how best to trade and avoid being caught out in them. I've attached some screenshots of Wesfarmers LTD, a stock in the ASX. When you look at the ask price for 11am 04.12.2023 there is a massive spike in price however the bid price barely moves at all. This would have wiped out any short positions. There is no increase in volume and the market had already been open for one hour before the price change. There was also no earnings or other factors that I can find online which would explain the price move. Can anyone in the forum please help me to understand what the reason is for these type of fluctuations in the spread that only last a minute or so? I've attached screenshots of the bid/ask price for the daily and the 5-minute range. Any advice would be greatly appreciated! Thanks

Hi, Hoping somebody can help. I used to recieve push notificaitons on my phone for alerts but for some reason they stopped and I've tried everything I can think of to get them back. All IG notifications are enabled, logged into correct account, uninstall/reinstall mobile app. Has anyone else had this issue? Thanks

Hi, I'm hoping someone can help me to understand better how the ask and bid prices can vary so much. I've uploaded two screenshots, one for the bid and the other the ask price on Wednesday 10am 4 hour candle. I'd like to point out that I'm not complaining or saying anything is incorrect. Just trying to better understand how it works and how people manage to effectively trade instruments with such a large variance. Any help greatly apprectiated Ryan

Hi, thank you for getting back to me. As far as I can find online the MT4 platform has to be in UK time. Unlike the IG platform which is local Melbourne time for me. I could be completely wrong on this. Although Melbourne time would be easier for me the main issue is just knowing exactly what the correct time I'm looking at is. As the two don't correlate I'm now unsure if the 5pm candle in Melbourne is the 8 or 9 am candle in the UK. This is especially the case when I go back in history further than the IG platform data as I have no other source to compare timings. I imagine there must be an exact formula to work out which is the correct candle but without having more data to look at and compare times I can't figure a way to do it.

Hi, hoping someone can help to clarify something for me. I've just started using MT4 and am trying to manually backtest a strategy. The strategy is time of day specific and I have noticed that the timing of candles on the chart differs from the timing on my IG Platform. I am in Australia so both accounts have different time zones however after doing the calculation they don't cross over correctly for the entire year. For example on todays date 5pm Aus correlates to 8am Uk, which is what world clock says is correct. However even after I do the daylight savings conversion any time before March 30th is still one hour out. Can somebody please confirm the system that is used for timing on the MT4 platform. Does it not change with UK time during the daylight saving clock changes? Any help greatly appreciated Thanks!

Hi, hoping someone can help me with a quick question. I'm using the IG platform and trying to set stops based on a specific price point, rather than points away. I'm pretty sure I've seen it on the platform somewhere but can't find the option now. I know once I place the deal I can then change it on the chart window but trying to do it from the opening if possible. I've had a look around and can't seem to find the answer online so sorry if this has been answered already. Thanks!

Got it, thank you!

This may be a really stupid question.. When shorting would my limit be hit at the bid price and stop hit at ask price? Vice versa for long positions. Or is it when shorting, both my stop and limit will be hit at ask price and long positions would both be hit at bid price? Thanks!

Sweet I didn't know mt4 was better for backtesting. I'm gonna give that a shot. Thanks

Yeah that makes sense. I'm gonna look up the average true range and go from there. Thanks

I'm trying to work out the best way to do this. Do I need to keep toggling between the bid/ask price view as I'm backtesting to see where my buy in, stop loss and limits would be hit. Or is there another way to factor it in? I'm guessing as it keeps changing I can't just add/subtract a certain amount of pips. Thanks

Looks like I have more homework to do haha Thanks for the help guys!