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🌊 What are Floating Spreads?

Tim avatar
Written by Tim
Updated over 6 months ago

Floating spreads (also called variable spreads) change throughout the day based on market volatility and liquidity conditions.

They reflect the best available Bid and Ask prices received from our network of liquidity providers at any given moment.

Advantages of floating spreads:

  • You typically get tighter spreads (lower trading costs) under normal market conditions

  • You benefit from real-time market pricing when placing trades

Things to keep in mind:

  • Floating spreads may widen significantly during:

    • Major economic news releases

    • Periods of low liquidity or high volatility

This makes them ideal for traders who want access to the best available prices, but who are also comfortable with occasional price fluctuations.

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