3 pip spread FXCM

just a bit confused on where to place my hard stops and targets when the spread is 3 pips…trading aus/jpy, eur/jpy…never had to deal w this type of spread cost when trading futures…only round trip commissions of course…

I have just started to sim trade a scalping strategy where I have a 10 pip stop and 10 pip target on a 1 min chart using chart trader in NT7…

it seems my stop will get hit 3 pips before it actually hits stop level…but target is hit 3 pips beyond actual target level…I realize this is due to the 3 pip spread…but can someone explain where to set my stops and targets when using chart trader?

IOW…do I need to set my stop 3 pips above/below 10 pip hard stop, and my target 3 pips beyond 10 pip target?

obviously I need to know this before I actually trade live (again)… I am using a 1% capital risk model…very important that I stick to this risk model.

any help much appreciated…

With 3 pip spread you will be never profitable :wink: I would search a lower spread first

Yes that would be fine.

Of course it can be profitable. Scalping isn’t something I do as I believe it makes long terms gains harder but a 3 pip spread does not mean its impossible to be profitable.

For a scalper 3 pips is a lot as the SL and TP are placed very tight. I would look for a better broker if you want to scalp. In order to answer your question, let’s try this and see if it makes sense:

If you have a 3 pips spread and want to lose only 10 pips then you need to set your SL 7 pips away from your price as the second you open your order you are already down 3 pips.

Hi Shooly,

Here are a few points to keep in mind when setting stops and profit targets using Trading Station charts.

[li]If you are in a long (buy) position, then your stop or take profit order would be triggered by the bid price.
[/li][li]If you are in a short (sell) position, then your stop or take profit order would be triggered by the ask price.
[/li][li]By default, the charts on Trading Station show the bid price (AKA the sell price).
[/li][li]You can view the ask price (AKA the buy price) by clicking on the “A” button in the chart toolbar as shown below.

You mentioned that you traded futures in the past. In that case, you may be interested in our Active Trader accounts which have a spread plus commission pricing structure. The commissions are negotiable based on your trading volume, and the combined transaction costs should be substantially lower than a standard FXCM trading account that uses No Dealing Desk execution.

Active Trader accounts are designed for individuals and institutions that trade more than 10 million notional per month or deposit more than $25,000. If you would like me to have one of our Active Trader specialists follow up with you to discuss this in more detail, please email me at <[email protected]> with your phone number and the best time to reach you.