Spread behaviour around the London 4pm fix
Posted: Sat Oct 31, 2026 7:30 pm
The WM/Reuters fix at 4pm London is a window where large amounts of currency get exchanged at a benchmark rate. Funds with month-end hedging needs tend to trade into it, and that creates sharp, short-lived moves in the minutes before and after.
For a scalper there are two effects. Volatility spikes briefly, which can look like opportunity. But spreads often widen a touch and fills get less reliable, particularly on the last trading day of the month.
The price action around the fix has a characteristic feel. A one-directional push into the benchmark, then a partial retrace once the window closes. It isn't reliable enough to trade blindly, but it's worth checking whether a setup that works elsewhere falls apart in that half hour.
A simple way to learn is to mark 3:45 to 4:15 London on historical charts and look at ranges on month-end days against a normal day.
Does anyone trade the fix deliberately, or avoid it?
For a scalper there are two effects. Volatility spikes briefly, which can look like opportunity. But spreads often widen a touch and fills get less reliable, particularly on the last trading day of the month.
The price action around the fix has a characteristic feel. A one-directional push into the benchmark, then a partial retrace once the window closes. It isn't reliable enough to trade blindly, but it's worth checking whether a setup that works elsewhere falls apart in that half hour.
A simple way to learn is to mark 3:45 to 4:15 London on historical charts and look at ranges on month-end days against a normal day.
Does anyone trade the fix deliberately, or avoid it?