Unusually large spreads

[Hectares]

some links to other post which may assist. unfortunately there are a lot of post about wide spreads, staff have replied with the same answer.

@PeterA

We have what is called a floating spread - meaning that it reacts to the current market conditions such as volatility and liquidity and might be increased or decreased, depending on their current state. The target spread is what the spread would be under “normal” market conditions.

@David

The spread markup is in % & doesn’t vary wildly.

It’s just more noticeable with small caps as they have quite a large base spread as a % of their price compared to other companies.
Example: Microsoft, a $220+ stock usually has a 1-3 cents spread. BRQS, a $1.2 stock’s spread also swings between 1-3 cents.

We’re working on reducing the spread for all CFD instruments but hedging exposure for these small caps is quite difficult & costly.

It’s not a coincidence that no other CFD broker has Borqs Technologies.

@David

@Hectares It is a fixed % but depends on the underlying base/raw exchange spread. In my previous statement where I compared Microsoft to BRQS, I was referring to their raw exchange spread - the one before any markup.

I just wanted to point out that BRQS has the same raw/base spread as a $220 company.

@PeterA

Spread is a dynamic value - might get increased if the volatility is increased or the liquidity dries out. You can read more on it here:

Trading 212

What is spread and how it works?

Generally the spread is the difference between the Buy (ask) and the Sell (bid) prices. Depending on the market conditions (volatility and liquidity), the spread can vary throughout the day 'Floati…