A common complaint among retail traders is that spreads are too unstable to trade profitably, especially during volatile sessions or around news events. This belief often stems from sudden spread widening, slippage, or inconsistent pricing — which can stop traders out or skew risk-reward. While spreads can fluctuate, especially in fast-moving or illiquid conditions, the idea that they make profitable trading impossible is a myth. In reality, stable spreads exist in most conditions — and even during volatility, disciplined traders can adapt and profit.

This article breaks down what causes spread instability, when it matters, and how to trade successfully despite it.

Why traders believe spreads are the problem

1. Stops triggered by wide spreads
Many traders are stopped out when spreads widen briefly — even if price action never touched their actual level.

2. Lack of understanding around spread behaviour
Beginners don’t realise spreads can expand during news, rollovers, or low liquidity — and misinterpret it as manipulation.

3. Choosing the wrong broker
Some unregulated or low-quality brokers apply huge spreads during events to maximise profit — giving the impression that all spreads are unstable.

4. High-frequency scalping exposure
Scalpers rely on very tight spreads. Even small fluctuations can wreck their edge, leading them to conclude that spreads are unreliable.

5. Trading exotic or illiquid pairs
Pairs like USD/TRY or NZD/CHF often have naturally wider, more volatile spreads — but traders apply the same expectations they use for EUR/USD.

Why spreads don’t prevent profitability

1. Major pairs offer tight, consistent spreads

• Pairs like EUR/USD, GBP/USD, USD/JPY often have 1-pip or lower spreads with reputable brokers.
• Even during volatility, spreads may widen temporarily — but quickly stabilise.

2. Spread widening is predictable

• It typically occurs:
  • Around major news releases
  • During the daily rollover (around 10 PM GMT)
  • In low liquidity hours (late Asia session)
• Traders can easily step aside during these windows or adjust risk.

3. Risk management neutralises spread impact

• Setting stop-losses beyond spread thresholds avoids accidental stop-outs.
• Traders can adjust entry buffers to avoid triggering trades at peak spread.

4. Spread cost is part of position sizing

• If you’re risking 2% per trade with a 30-pip stop, a 1–2 pip spread is negligible.
• Spreads only eat into profits if you’re overtrading or under-optimising your setup.

5. Institutional traders also deal with spreads

• Banks, funds, and prop traders operate in the same environment — they succeed by adjusting execution and focusing on edge over many trades.

How to manage unstable spreads effectively

1. Trade during high liquidity sessions

• London and New York overlaps offer the most stable spreads.
• Avoid late-night or early morning sessions where volatility + thin books increase instability.

2. Use limit orders instead of market orders

• Limit entries help you control the price at which you’re filled — avoiding slippage from sudden spread spikes.

3. Confirm spread widening windows with your broker

• Most brokers post typical spread ranges during different market sessions or offer raw spread accounts with commissions.

4. Monitor spread directly on your chart

• Use a spread indicator or trading tool to visualise widening in real-time and adjust timing.

5. Avoid scalping unless you have ultra-low spreads

• Scalping only works with premium execution, tight spreads (0.1–0.5 pips), and high precision.

Conclusion

Spreads can be unstable — but that doesn’t make forex unprofitable. Spreads are a cost of doing business — not a reason to avoid it. With the right broker, trading hours, and strategy, spread impact becomes negligible. The traders who struggle are often overexposed to micro-moves or unaware of when and why spreads widen. The professionals adapt — and profit anyway.

To learn how to trade with precision, manage execution, and adapt to live market conditions — including spreads — enrol in our Trading Courses at Traders MBA, where strategy meets structure.