Forex spreads often widen around major economic releases because prices are changing quickly and liquidity providers are less willing to quote at the old levels. That can make an entry or exit more expensive, even if the price shown on your chart barely moves. To understand what happened to a trade, you need three prices: the bid, the ask and the actual fill.
What changes when economic data comes out?
The bid is the price at which you can sell the base currency. The ask is the price at which you can buy it. The difference is the spread. On a variable-spread account, that difference can change from one quote to the next.
Before a scheduled release, some providers may quote less size or widen their prices because a quote that looks reasonable now could be stale by the time an order reaches them. After the release, providers reassess prices as they digest the headline, the details and any revisions. For example, a strong employment headline and weaker prior-month revisions can point in different directions. Even if the pair eventually returns to its pre-release level, trading conditions in between can be very different.
A rate decision can have more than one moment of repricing. The statement may move the market first, followed by another change when the press conference clarifies the outlook. There is no universal number of minutes after which spreads return to normal. The currency pair, time of day, provider and size of the surprise all matter.
EUR/USD example: a wider spread with no move in the midpoint
For EUR/USD, one pip is 0.0001. Subtract the bid from the ask and divide by 0.0001 to get the spread in pips.
| Illustrative quote | Bid | Ask | Midpoint | Spread | Immediate buy-and-sell cost on EUR 10,000 |
|---|---|---|---|---|---|
| Before the release | 1.0849 | 1.0851 | 1.0850 | 2 pips | US$2 |
| During the release | 1.0846 | 1.0854 | 1.0850 | 8 pips | US$8 |
On EUR 10,000, each pip is worth US$1. If you buy at 1.0854 and immediately sell at 1.0846, the difference is US$8, assuming both orders fill at the displayed prices. That is US$6 more than at the first quote. The example excludes commissions, financing and slippage. If your account uses a currency other than US dollars, the result may need to be converted.
This is an immediate round trip at a single quote. For a position held through the release, use the actual entry and exit fills to calculate profit or loss. Subtracting a separate spread charge from those fills would count the spread twice.
How can a stop trigger when the chart never touched it?
A chart may show the midpoint or just one side of the quote. An order can use a different price. A long position is closed by selling, generally at the bid. A short position is closed by buying, generally at the ask. The precise trigger rule depends on the product, platform and order settings.
Using the wide quote above, a long position with a sell stop at 1.0847 can trigger when the bid reaches 1.0846, even though the midpoint still reads 1.0850. A short position with a buy stop at 1.0853 can trigger when the ask reaches 1.0854. A bid-only chart would not show that ask crossing.
The trigger and fill are separate events. Suppose the long stop at 1.0847 triggers during a fast move and fills at 1.0844. The fill is three pips worse than the stop level. That difference alone does not tell you what share came from a gap at the trigger and what share came from subsequent repricing. To separate them, compare the stop level, the first qualifying quote and the reported fill. A conventional stop can execute beyond its trigger price. An order with a price limit can instead remain unfilled if the market moves past that limit. Check the terms of the order your platform actually offers.
How to compare costs between brokers around news
Compare the same currency pair, release, order size and account type. A minimum advertised spread does not describe conditions around a specific announcement. If timestamped quotes are available, compare the median and widest observed spreads in equivalent windows before and after the release. Note how long elevated spreads persisted. One snapshot can miss the brief period in which an order triggered.
Add commissions separately when comparing pricing models. At EUR 10,000, an illustrative account quoting a 2-pip spread plus US$0.50 commission per side costs US$3 for an immediate round trip at the quoted prices. A spread-only account quoting 2.5 pips costs US$2.50 under the same assumptions. If those spreads widen to 4 and 7 pips respectively, the comparison becomes US$5 versus US$7. The relative cost can reverse. These are hypothetical prices, and actual fills may differ.
How to investigate an unexpected fill
- Save the order ID, currency pair, size, direction, order type, trigger price and fill price. Record the timestamps and their time zone.
- Confirm the trigger rule in force for that order. Identify whether the chart shows bid, ask or midpoint. A one-minute candle can hide the order of price changes inside that minute.
- Request timestamped bid and ask quotes around the trigger and fill from the provider for the relevant instrument and account. Compare the correct side of the quote with the stop level. If the order filled in parts, check the size and price of each fill.
- Separate the explanation for the trigger from the explanation for the fill. The quote crossing the stop explains why the order activated. It may take execution records to explain the final price. If the records do not line up, ask the provider to reconcile the timestamps and quotes against the order ID.
A price from another broker can provide context, but it does not establish the quote or available size for your order. Likewise, a demo account can help you observe quotes without taking a position, but its fills may not reflect live execution.
Frequently asked questions
Do spreads widen at every rate decision or jobs report?
No. The response varies with liquidity, the currency pair and how the release compares with expectations. A scheduled event tells you when to observe the quote, not what spread to expect.
Can spreads widen without a major news release?
Yes. Quotes can widen around market openings or closings, during periods of thin liquidity, or when unexpected events make prices harder to assess. Check the timestamp before attributing a wide spread to an economic announcement.
Does a fixed spread protect against slippage?
A fixed spread describes the relationship between the bid and ask when the provider applies that pricing. It does not by itself guarantee an execution price. Check for pricing exceptions, order conditions and any separate execution guarantees.
How can I tell whether spreads have returned to normal?
Compare the live spread with observations for the same pair, account and time of day outside the event window. Several comparable quotes give a better indication than one narrow quote. A return to typical spreads does not guarantee that the next order will fill at the displayed price.
Leveraged forex trading can magnify losses. This guide is for general education. See PM568’s Financial Risk Disclosure.