How it works
Spreads often widen when fewer counterparties are quoting, when prices move rapidly or when uncertainty makes market makers less willing to provide tight prices.
What to check
Compare typical spreads across different market conditions rather than relying on a single minimum figure. News releases, daily rollover and market opens can look very different from quiet periods.
- Do not rely on minimum spreads
- Check spreads around events
- Remember both bid and ask matter
Limits and risks
A wider spread raises the cost of entering and exiting and can trigger orders sooner because charts may emphasize only one side of the quote.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.