Why Forex Spreads Widen and Slippage Happens During Major News

For many new Indian Forex traders, the experience of trading during a major news release is deeply frustrating. You expect a currency pair to move in a logical direction after an announcement. Instead, the market’s first reaction seems chaotic, your expected trade price is skipped, and your trading costs suddenly increase.

Understanding the mechanical reality of how banks, liquidity providers, and retail brokers handle these events will help you stop blaming the market and start managing your risks.