after nfp, how long before spreads return to normal?

@arthur_wildberry - 1 year ago - Risk Management

Okay, so it's been 10 minutes since nfp was released & my broker spreads are still higher than normal. How long do I have to wait for volatility to subside & the spreads to return to normal so i can resume trading? Answers will be appreciated.

@cahaya_dewan - 1 year ago

I think it depends on the broker you are using. From my observation, brokers who offer higher leverage leave their spreads high for up to 30 minutes after nfp, while brokers who offer lower leverage adjust/return their spreads back to status quo after about 15 minutes.

@khumalo_thembisa - 1 year ago

If the first 5-minute candle after nfp release is very big, then typically volatility should die down in around 15 minutes and spreads will return to normal conditions. But if the first 5-minute candle is small then volatility may persist another 20 minutes before it subsides. This is just my observation

@headies25284 - 4 months ago

After the NFP release, spreads can behave very differently depending on the broker, liquidity, and market conditions. Based on my observation, it takes about 10min.

@headies25284 - 4 months ago

Quoted - headies25284

After the NFP release, spreads can behave very differently depending on the broker, liquidity, and market conditions. Based on my observation, it takes about 10min.

Factors That Affect Spread Normalization

Broker type – ECN/STP brokers usually normalize faster than market makers.

Pair liquidity – Major pairs stabilize quicker than crosses or exotics.

Market conditions – If NFP triggers follow-up news or extreme reactions, spreads may stay wide longer.

Time of day – US session liquidity can help spreads normalize faster during overlap with London session.