I understand that a spread could widen much in times such as day opening, week opening and news release. So I use a spread indicator to monitor it during trading. I found something interesting. It could jump to pips for every pairs. Some phenomenon for it as following: I hope that so. Otherwise, you as a trader should do as following: Widen your Stop loss 15 pips more at EOD. Better to act on a motor " Rule number 1: Or widen your SL more 30 pips at Friday closed.
That's a neat indicator. Our trading desk to dig into the archives to verify spreads going that far back. It is possible, but since it's a time consuming process, we normally would only do it, if there was a trade audit involved where one of your live trades was affected.
Otherwise, if you were just asking a general question about how wide spreads can get, then I can address that here. Theoretically there is no limit to how wide spreads can get. That is because FXCM does not set the spreads. As you noted though, a knowledgeable trader can prepare for this by knowing the times when spreads are most likely to widen, such as 5pm New York time every weekday, since it marks the end of one trading day and the start of the next. Banks will typically widen their spreads, since their is not much trading in the market at that time, giving banks the opportunity to refresh their servers and apply rollover interest to open positions.
News events are another time when spreads typically widen. You can use an economic calendar such as this one on DailyFX. Is it normal or not for spread being widen like that? Hi Jeffreyvlk, That's a neat indicator. The two steps you suggested are wise for any trader to use when settings stops.More...