Variable Spreads

[mathewhyden]

Does anyone know the advantages of Variable Spreads?

[sn�gs]

http://www.theanswerbank.co.uk/Business-and-Fi nance/Business/Question759734.html

You two need to have a chat...

[juliagrace]

Reliable companies offer Straight Through Processing or STP to retail clients with variable spreads. This facilitates transparent pricing for the clients with the provision of non-fixed variable spreads. Moving on the base of liquidity and the volatility of the actual Interbank market, variable spreads are found to be low in normal market conditions as compared to brokers who offer non-moving fixed spreads. Variable spreads become larger while fixed spreads remain the same in abnormal market conditions at the time the market is volatile and illiquid. The variable spread would reflect that of the Interbank price facilitating transparency to the end user client. Brokers cannot honor prices at this time of volatility as it will not reflect the true market price. The trader is more aware of the market price with variable spreads. The spread will widen according to the market conditions giving the trader a better picture and allowing him to assess underlying risks therefore safeguarding his interests. Please visit: http://www.ismarkets for further information.