Dealing with Spread

This is a discussion on Dealing with Spread within the First Steps forums, part of the Reception category; Hi all, I understand that there is a difference between the buy and sell price. I also believe that brokers ...

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Old Sep 26, 2017, 11:00am   #1
 
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Dealing with Spread

Hi all,

I understand that there is a difference between the buy and sell price. I also believe that brokers have different 'spreads'. The broker I am using is averaging 3% which I feel is high as I am day trading and therefore have to make at least 3% to break even not including trading fees and stamp duty.

Anyone got any advice on how they deal with it. Maybe I need a new broker???

Regards
Alig
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Old Sep 26, 2017, 2:28pm   #2
 
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Originally Posted by alig View Post
Hi all,

I understand that there is a difference between the buy and sell price. I also believe that brokers have different 'spreads'. The broker I am using is averaging 3% which I feel is high as I am day trading and therefore have to make at least 3% to break even not including trading fees and stamp duty.

Anyone got any advice on how they deal with it. Maybe I need a new broker???

Regards
Alig
I guess you are not talking about stocks... this is bringing me back 20 years down memory line...
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Sep 26, 2017, 2:41pm   #3
 
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I guess you are not talking about stocks... this is bringing me back 20 years down memory line...
I was talking about stocks i.e AO is circa bid - 111.8, ask - 116.3. Is this just the volume issue or is it Broker related?
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Old Sep 26, 2017, 4:21pm   #4
 
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I was talking about stocks i.e AO is circa bid - 111.8, ask - 116.3. Is this just the volume issue or is it Broker related?
Which exchange the stock is trading on, cannot find it on the US stock exchanges to check... Also what is the average dally volume? It is possible to have such a spread on low volume high priced stocks...
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Sep 26, 2017, 4:25pm   #5
 
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alig started this thread Its on LSE. Volume 108,472
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Old Sep 26, 2017, 4:57pm   #6
 
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Its on LSE. Volume 108,472
Sorry I don't have back data for this so cannot check for you, but looks like very low vol stock, so it might be possible ...
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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