Spread conditions widen in forex brokers

To Gunawan,

The occurrence of widening spreads is actually common in forex brokers. And usually, this widening of the spread only occurs under certain conditions such as before the release of important news or before the market closing session. However, if the spread widening at a broker occurs frequently without a clear reason, then the broker should be suspected because it could be that the broker is committing fraud.

Hopefully this can help.

What's the difference between this and SL hunter?

To Lena Mahardika,

There's no difference. Because stop loss hunter brokers often also tamper with the spread (spread widening) as a way to carry out their fraud.

@ Gunawan:

- … In the comments, someone said the spread widened. What does that mean, min?

Spread is the difference between the Bid and Ask prices offered by the broker. In the specifications, brokers usually mention the spread size which is the average because the spread can change depending on price volatility.
A widening spread means that the spread has exceeded the average value mentioned by the broker. For example, if the broker specifies a spread of 2 pips for the EUR/USD pair, but when the spread widens it can reach 5 pips.

@ Lena Mahardika:

- What's the difference with an SL hunter, min?

An SL hunter is a broker who carries out SL hunting actions. SL hunting is a fraudulent act by manipulating price movements so that the SL level set by the trader can be hit and the trader experiences a loss. If the trader loses, the broker profits. SL hunting actions can be carried out with certain software that can widen the spread.

Regarding SL hunters, please also read: 3 Surprising Facts About Stop Loss Hunters

 

@Gunawan: A widening spread means the distance between the bid and ask prices widens, which can impact SL and TP being hit quickly.

A widening spread is normal if accompanied by high-impact news or during market closure. Widening spreads occur due to very high or very low transaction volume in the market.

During high-impact news, transaction volume is very large, while during market closure, transaction volume is very small.

@Lena Mahardika: The difference between a widening spread and SL hunting is significant. A widening spread doesn't necessarily indicate fraud.

A widening spread condition can occur and is normal. However, SL hunting is not normal and is considered fraudulent.

SL hunting is carried out by fraudulent brokers by hitting their clients' SLs when they shouldn't be hit.