If you've noticed that the spread (the difference between the buy and sell price) becomes much wider around the time important economic news is released. This is a normal reaction in the market during periods of high volatility. Here's why it happens and how it may affect your trading.
What is the spread and why does it widen?
The spread is the cost of opening and closing a position. Under normal conditions, it's usually quite low.
But when major macroeconomic news is released, such as:
Employment data
Interest rate decisions
Central bank statements
market volatility spikes, and as a result, the spread increases.
When does this spread widening happen?
Typically, spreads widen:
5 to 10 minutes before the news is published
And 5 to 20 minutes after, depending on the market’s reaction
In some cases, volatility can begin 30 to 40 seconds before or even arise unexpectedly, unrelated to news announcements.
How much can the spread widen?
The spread can increase significantly, such as:
Up to 15–20 pips for GBP pairs like GBP/USD or GBP/JPY
Up to 10–15 pips for pairs like AUD/JPY, EUR/CAD, AUD/CAD, and AUD/CHF
Other pairs may also be affected, though usually to a lesser extent
Why should you be cautious?
During these periods:
Your orders may be executed at less favorable prices
The cost of trading temporarily increases
The market becomes more unpredictable
⚠️ The alerts you receive about important events are only guidance, meant to help you stay cautious — they can’t guarantee the exact timing of the spread widening.
Helpful tips for you
Check the economic calendar before you trade
Avoid opening new trades right before or after key news events
Stay calm — this behavior is temporary
Use appropriate stop losses, but be aware of possible slippage during volatility