Can spreads widen significantly during periods of low market liquidity or unexpected market events?

The difference between the bid and ask price of a currency pair is known as the spread. Also known as the “bid/ask spread,” the spread is how “no ... While, to date, HFT has been most prevalent among the major currency pairs, it has the potential to spread to other relatively actively traded currencies, ... ask spread is relatively large [Vijh (1990)]. Thus even if informed investors trade in the option market, the way their information is being transmitted. Dec 6, 2012 ... available information of the Covered Forex Transactions, and if the circumstances change, the. Division may limit, impose additional or ... understand the determinants of bid-ask spreads and the process through which information comes to influence the exchange rate. The microstructure evidence in ... Mar 1, 2002 ... This book will teach you the origins of liquidity, transaction costs, volatility, informative prices, and trader profits. This book is not about ... Dealers, who profit from the spreads charged on the liquidity they provide, could earn substantial revenue from their informational advantage and the large. When a client indicates an interest in a potential transaction or provides CIBC with a request to enter into a transaction, CIBC may use that information to ... Feb 12, 2021 ... informational advantage. While a single order might not cause a ... It relies on a study on Forex liquidity where spread data. (called ... What is forex trading? The foreign exchange market (also known as forex or FX) is the global marketplace for trading currencies and currency derivatives.