Spread Impact Analyzer
Compare your strategy's performance under normal and widened spread conditions. Discover your break-even spread and see the true cost of trading during volatile sessions.
Why Spread Costs Matter
The spread is the most consistent cost in forex trading. Unlike commission (which is fixed), spreads widen during news events, session opens, and low-liquidity periods. For scalpers and high-frequency strategies, this can erase your edge.
When spreads widen
- News releases: NFP, CPI, rate decisions — spreads can 3-10x.
- Session transitions: Between NY close and Sydney open.
- Low-liquidity pairs: Exotic and minor pairs carry wider spreads.
- Off-hours: Trading during weekends or after-hours on some brokers.
What to do about it
If your break-even spread is close to your normal spread, your strategy has a thin edge. Consider trading during tighter-spread sessions (London/NY overlap), using an ECN broker, or adjusting your take-profit to account for spread costs.