Hi All,
I have a newbie question on…
why there would people like to trade currencies with a big spread (e.g. GBP/JPY , NZD/USD , USD/CAD) ?
Is it because of the bigger volatility that can bring more pips earn ?
why don’t they just stick on EUR/USD (0.9 pip spread in Oanda)?
I dont know about you peeps but for me pips spread is the least important to me when trading. Maybe because of the system I use but I dont consider spreads when trading. I trade 22 pairs, I trade from charts not spreads.
THERE IS NO FIXED SPREAD IN FOREX!!
There are FIXED SPREAD BANDITS, I mean brokers, and ECNs.
Trade with an ECN period.
The FIXED SPREAD BANDITS, I mean brokers, make the spread wide so they always win.
You can search for my posts where I go into detail.
Is it true that scalper will not look at these big spreads currencies ?
so the best currency for scalper is low spreads pairs (like eur/usd) ?
can i say so ?
I like to scalp the GBPJPY for 5 pips.
I like the spread to be 5 or more pips because I buy on the bid and sell on the ask. The price doesn’t have to move much for me to take my pips.
I like to scalp the GBPJPY for 5 pips.
I like the spread to be 5 or more pips because I buy on the bid and sell on the ask. The price doesn’t have to move much for me to take my pips.
I’m guessing you dont use a SL, and the price really has to move 13pips as the spread on the guppy is about 8. Luckily it does that about every blink or so. I’m not a scalper so I can’t comment on it - she just jumpered up in down 30pips while typing this
I like the guppy cause this pair seems to range pretty nicely and you can usually wring out 150-300+ pips a day on her, so an 8 pip spread isn’t much.
May I suggest you demo with an ECN broker.
This is my live Level II Market Depth for the GBPJPY.
I don’t see an 8 pip spread because there is NO FIXED SPREAD in Forex.
Also, I can buy on the bid and sell on the ask. You can’t do that with a fixed spread broker. You buy the ask and sell to the bid.
May I suggest you demo with an ECN broker.
I still with a retail broker - IBFX and the spread is always 8 pips or higher.
hows the commision per trade compare to and 8 pip spread?
Comission at MBT is $5 per 100,000 units. Right now spread for GBP/JPY is 5 pips with them, but that fluxuates all the time.
Keep in mind you’re paying comission PLUS whatever the spread happens to be when you exit.
Some of them are very volitile and fast moving. The ZAR is one of them 60 pip spead but its range is 2000 pips a day you can still scalp them. But its not recommended
Thanks for the reply all
YOU ARE MISTAKEN!!
Let’s say you pay 201.28 for the GBPJPY and the bid/ask is 201.23 x 201.28.
You then immediately enter a LIMIT order to sell at 201.33.
Your order goes on the ASK.
The price goes up.
Now the bid/ask is 201.28 x 201.33 and you see your order sitting on the ask.
Your order can now be filled by a MARKET BUY ORDER or a LIMIT ORDER at 201.33 or higher.
Or your order can get filled when the bid reaches 201.33.
But NO MATTER WHAT HAPPENS, when you are filled, your ONLY cost is the commission… the spread doesn’t make a difference… you gross 5 pips. All you pay is the commission cost which is the equivalent of about 2 pips. So you net 3 pips on the trade.
When people learn how Forex really works, the FIXED SPREAD BROKERS will not have any customers.
But PLEASE stop posting MISINFORMATION about ECNs. Thank you for your cooperation.
Like I said, if you do not believe me, download a demo and you’ll see it with your very own eyes.
YEAH that would be nice. Also, it would be like closing the subject if there were snapshots of account showing trades results…
I guess it would all depend on your trading style. There are many more types of trading than just scalping. I am sure you know that, with that being said though. If you were going to be in a trade long enough then a spread really wouldn’t matter. Now if you are entering and exiting trades in a matter of a couple pips then the spread can begin to hurt a bit. I think of the spread as the brokers way to make their money off scalpers. I mean if the spread was 1 pip no one would care and just be rampant trading, and would take forever for a broker to fill these and such (at least to my understanding) Even if it is mostly automated, someone has to monitor that system and the lag would be horrible I would imagine. But then again I am a noob so what do I know? 
Hope you find an in between system that works for you. Raven
Rumple,
You can expect a post from MBT about this. They have read your post and told me you are incorrect.
Dear sir,
My name is Kevin Lam and I am a representative from MB Trading Futures.
To address your limit order example you are correct in stating this as Limit orders can only be executed by a Market Buy or Limit Order.
I was informed by the previous poster (Vulcan) that this may be incorrect but after reviewing the post in its entirety there is no issue at hand.
Brokers who utilize ECN technology do not collect on the spread.
Just to clarify TheRumpledOne Post #12 is 100% correct.
Regards,
Kevin Lam
MB Trading Futures
Ok, I stand corrected.
YES, YOU DO!!
Next time, please do your research BEFORE you post erroneous information.
Well, I was placing orders exactly as you were describing. Buy limits were being filled by ask and visa versa. So I asked MBT about it, Kevin said he read the post and told me that I was right the way I was understanding it.
So I believe I did some research. Anyway, trade on.
Back ON TOPIC.
Why would people still trade on BIG spreads currencies?
BECAUSE IT IS PROFITABLE!!