Fixed or Floating

[FranziskaSchulz]

Hi there!
I have worked with both spreads; usually the fixed ones are a little higher than what you can expect, and the floating ones are always changing (even when you do not know the reason!).
Also, I prefer fixed ones because I can easily calculate them for setting my SL and TP, but at the end, what do you think? Which one do you prefer?

 

[ThaddeusFinch]

With fixed spreads, traders can develop and execute trading strategies with greater precision. The consistent spread allows traders to focus on other aspects of trading, such as technical analysis, fundamental analysis, or risk management, without worrying about spread variations.

 

[Vasey]

The choice between fixed and floating spreads depends on individual trading preferences and market conditions. Fixed spreads remain constant regardless of market volatility, offering predictability in trading costs. They can be advantageous during times of high volatility or news events when floating spreads might widen significantly. Conversely, floating spreads fluctuate according to market conditions, potentially providing tighter spreads during normal market conditions. Traders who value flexibility and adaptability may prefer floating spreads, while those seeking stability might opt for fixed spreads. Ultimately, the best choice depends on the trader's strategy, risk tolerance, and the specific market conditions they aim to navigate.

 

[Larisa]

Totally get that. Personally, I lean towards fixed spreads too. They're a bit higher, but their predictability helps me a lot. Floating ones can change too quickly for my liking, making it trickier to manage trades sometimes.

Hi there!
I have worked with both spreads; usually the fixed ones are a little higher than what you can expect, and the floating ones are always changing (even when you do not know the reason!).
Also, I prefer fixed ones because I can easily calculate them for setting my SL and TP, but at the end, what do you think? Which one do you prefer?

 

[Zerologic]

I am using a floating spread broker, usually at ECN brokers, the spread is tighter and sometimes you get zero spread, but the floating spread is constantly changing, depending on market liquidity, that's why I prefer trading in the New York and London sessions because the spread tends to be low due to high liquidity.

 

[Xavier1]

Fixed spreads offer more predictability for SL and TP, but floating spreads can be lower during liquid times. I prefer fixed for stability, but floating can be better in the right conditions.

 

[MonicaGong]

I think both have their pros and cons. Floating spreads can be good when the liquidity is high but they also tend to widen unexpectedly during major news. Do you switch between fixed and floating as per the market conditions?

Fixed spreads offer more predictability for SL and TP, but floating spreads can be lower during liquid times. I prefer fixed for stability, but floating can be better in the right conditions.

 

[Zerologic]

I just feel more confident to floating spreads because they are offered by no-dealing desk brokers like ECN brokers. While fixed spreads are offered by dealing desk brokers which often involve requote problems and the possibility of price manipulation.