The Oanda Spread Bites Me

I had a long position during the European session and was stopped out this morning.  My profit targets "would" have been hit if it were not for the 27 pip spread Oanda had due to the GBP Core CPI announcement.  I'm not complaining, just stating my frustration because in the months trading with Oanda, I've never had issues other than platform crawl.  This could just be a coincidence.  I'm also not making excuses for losing on this h-system trade this morning.  They increased the spread, I was aware that they increased spreads during economic releases, I took my chances, and I lost this time.  My perspective on Oanda spread increases has changed a bit due to an email that David sent me late last week.  He has a very pro-broker view of spread increases.  Though it is pro-broker, I find it hard to disagree with him.  Thanks for the email David.

Another thing I'd like to address is that when you talk about the
spread being poor during news releases I think it might be misleading. 
This is my take on it: because the FX market is opened 24/7 the majors
don't experience what is common in Futures and Stocks which is
gapping.  Say overnight Microsoft Vista was hit with a major virus or a
major coffee producing country had a major eatrhquake or hurricane or
other smilar event the price would probably open at a significantly
different price than when it closeed.  All limit and stop/loss orders
placed in that gap would automatically be filled at the open price when
the Stock Market and Futures market opened.  The poor spreads during
news releases isn't soley based on an an abitrary descision by Oanda to
increase their profits by raising the spread, its just a reflection of
the volitility that comes during 15 or so minutes following the
release.  Like gaps in Futures or Equities between market open and
close. Remember many other platforms will requote if you try to enter
at Market during a news release.

My losses today cut my profit/loss down to +3 pips halfway through January.  This was a lot of work for a lot of nothing monetarily but for experience, this was priceless.  I'll have to fight my way back.  This should be fun….

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