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How long spreads stay wide after a major release

Posted: Sat Oct 31, 2026 8:04 pm
by Amanhasnoname
After a big data point, quotes widen and then slowly return to normal. How long that takes depends on the event, the pair and the time of day.

Logging spread at one-second resolution around releases gives clear patterns. For payrolls on EURUSD, spreads might be elevated for a minute or two, then drop back over the next ten. For smaller events, the effect fades faster.

Some brokers normalise more quickly than others, and this itself is information about their liquidity setup.

For a scalper, the practical use is a cooling-off timer. After a release, wait until the spread is back within a certain multiple of its normal level before trading. Waiting for the average of the last 30 seconds to fall under a threshold prevents trading into the tail of the disruption.

The cost is missing some early moves. The benefit is avoiding the most expensive fills.

Data collected over several events provides a rule that is based on evidence, not mood.

How long do you wait after a release before trading again?