Thanks, Nicolas!

Sorry, Despair, I meant to attach this picture as well. It doesn’t make any sense without it. I called IG today as well, and they guided me to show the spreads in PRT. The spread is 0.6 like you say, but often varies to 1.5. Very often I must say, but they claim to have a average spread of 0.75 for the last 12 weeks (according to IG’s website). They also guided me to have the spread as lines on the chart.

Many of the forex pairs I checked varies even more: GBP/USD to 2.0 instead of 0.9 and NZD/USD 3.0 instead of 2.0.

@Andre, I guess if you have a long limit order, it closes at the ask and if you have a short limit order, it closes at the bid. What you see on the chart is the mean of the two.

Spread.jpg

@Despair, Hopefully you can follow my intelligent drawing? You must have that orderflow window open to see the spread in centre at the bottom. Plus you can add the indicator Bid-Ask Color Band to visually see the how the spread differs.

@Andre, I meant that it executes (enters the market) at the bid/ask for a short/long. On the other hand, if you are talking about exiting, the reversed is true – your longs are exited on bid price and the shorts on the ask price. Since you are in the trade long, you will have to sell to get out, the price you get then is the bid price (compare that you’re selling a car, then someone makes you an offer of it, to pay £150 for it, that’s the bid price. You on the other hand may ask £155 (ask price), but then no deal will made since sellers and buyers can’t reach an agreement). Pretty OT from my question, but I hope it helps.

spread3.jpg