Pricing and Spreads
Prices displayed on the RockGlobal trading platform reflect available market pricing derived from underlying liquidity at the time the price is shown. These prices represent the interaction of buying and selling interest in the market and adjust continuously as conditions change.
A spread is the difference between the bid price and the ask price. Spreads are not fixed and may widen or narrow depending on liquidity, volatility, time of day, and prevailing market activity.
Pricing at RockGlobal is market-driven. Prices are not set or guaranteed by the broker and may change rapidly during active or volatile market conditions.
Market-driven price formation
Variable spreads reflecting conditions
No guaranteed prices or fixed spreads
Price formation mechanics
Price formation occurs through the continuous interaction of buyers and sellers in the market. At any moment, prices reflect the highest level buyers are willing to pay and the lowest level sellers are willing to accept, based on available liquidity.
Displayed prices update dynamically as new orders enter the market, existing orders are filled, or liquidity is withdrawn. Price formation is therefore a live process rather than a static quote.
| Pricing component | What it represents | What affects it |
|---|---|---|
|
Bid Price |
Highest price buyers are offering |
Reflects active demand |
|
Ask Price |
Lowest price sellers are offering |
Reflects available supply |
|
Spread |
Difference between bid and ask |
Indicates liquidity and cost |
|
Market depth |
Volume available at price levels |
Affects execution quality |
Understanding spreads
Spreads represent the cost of accessing the market and are directly influenced by supply and demand. They are not fixed values and may change frequently throughout the trading day.
When liquidity is abundant and participation is high, spreads are typically tighter. When liquidity is reduced or uncertainty increases, spreads may widen to reflect increased risk and reduced availability at price levels.
Liquidity availability
Higher liquidity generally supports tighter spreads, while reduced liquidity may result in wider spreads.
Market volatility
Rapid price movement or uncertainty can cause spreads to widen as available pricing adjusts.
Time of day and sessions
Spreads may vary between active market sessions and off-peak trading hours
Market events
Economic releases, geopolitical events, or unexpected news can temporarily affect spreads.
The role of liquidity in pricing
Liquidity describes the availability of buyers and sellers at different price levels. Pricing quality depends not only on the presence of liquidity but also on its depth and stability.
Deeper liquidity generally supports smoother price changes and tighter spreads, while limited liquidity can result in greater price sensitivity to order size.
Normal liquidity
Occurs during active market sessions with broad participation and stable pricing.
Reduced liquidity
Often seen during off-peak hours or market transitions, leading to wider spreads and increased price sensitivity.
Volatile liquidity
May occur during news events or sudden market shifts, with rapidly changing prices and available volume.
How volatility affects pricing
Volatility reflects the speed and magnitude of price changes in the market. During periods of heightened volatility, prices may move quickly and available liquidity may change rapidly.
As volatility increases, spreads may widen to reflect changing market conditions and uncertainty. Pricing during volatile periods may differ materially from prices observed moments earlier.
Volatility scenarios
Understanding trading costs
Trading costs may include spreads and, where applicable, commissions depending on the instrument traded and account structure. Costs are influenced by market conditions and may vary over time.
RockGlobal aims to provide transparency around how pricing and costs arise, rather than presenting simplified or fixed cost assumptions.
| Pricing component | What it represents |
|---|---|
|
Spread |
Difference between bid and ask prices |
|
Commission |
May apply on certain instruments or account types |
|
Market impact |
Indirect cost from liquidity and volatility |
What affects pricing and what does not
Some aspects of pricing presentation are managed operationally, while the underlying price levels and movements are determined by market forces.
| Broker-managed | Market-driven |
|---|---|
|
Platform price display |
Liquidity availability |
|
Operational infrastructure |
Supply and demand |
|
System stability |
Volatility and price gaps |
Pricing-related risks
Pricing risk is inherent in trading and includes the possibility of spread widening, rapid price changes, and execution at prices different from those observed at the time of order placement.
Pricing outcomes depend on prevailing market conditions, liquidity, volatility, and timing, all of which may change rapidly.