when spread widens it does push the ask price higher equal to the distance the bid price lowers, right?

Just Checking.

So if you were watching the bid & you didn’t notice the spread widening the bid price would seem to drop unexpectedly?

Any response please?

I’ll try to answer but I’m not sure I understand the question.

Here’s a simple example on EUR/USD:

Bid price: 1.3000

Ask price: 1.3003

Now… do you want to know what happens when the spread widens?

So let’s say that prices now are these:

bid price: 1.3000

ask price: 1.3005

So the bid price has remained the same, but the spread is 5 pips. This means that whether you want to buy, whether you want to sell, the spread is 5 pips.

I hope I have understood your question, anyway good luck

In your example the spread increased from 3 to 5.

To start with it was

bid: 1.3000

ask:1.3003

my question really is if the spread did then widen by 2 pips would the result be:

bid: 1.3000

ask: 1.3005

or

bid: 1.2999

ask: 1.3004

if 20 pips:

bid: 1.3000

ask: 1.3020

or

bid: 1.2990

ask: 1.3010

thanks so far!

The spread is just the distance between the bid and the ask. I think I understand what your getting at though. The spread is evenly distributed from current value, which is the average price in-between the spread. So you have 1.3000 bid and 1,3010 ask current value would be 1,3005. The spread is evenly distributed from the midpoint between the bid and the ask. So you now have a a 5 pip spread with 1.3000bid and 1.3005 ask. That gives a current valuation of 1.30025 so if your bid stayed the same but the ask changed there by changing the spread what is actually happening is the midpoint or current valuation is changing. So technically if you bought a long position at 1.3000 with the ask at 1.3005 then the ask moved to 1.3010 your position vs current value would have increased by 2.5 pips. However it doesn’t cause a price change until someone crosses the bid/ask. The best way to see this in action is to watch level 2 on a illiquid instrument as they will have large shifting spreads and you can see how the cost of crossing the bid/ask affects peoples orders.