Volatility Expands Spreads and Execution Risk

During times of extreme market chaos,platforms often widen their buy-sell spreads to protect against rapid price changes.This "spread expansion" can increase your transaction costs temporarily from 3% to as much as 8%.Wise investors avoid making large trades during the first few minutes of major global news events.Waiting for the market to stabilize usually results in much tighter spreads and a better overall execution price.