wallstreetking
Well-known member
- Messages
- 469
- Likes
- 6
Hi,
I have started learning to trade US and UK shares on IG Index. The spreads for Daily Rolling is much lesser then a quarterly contract. I am confused which one to go for.
Let me explain my strategy. Its an End of Day trend trading method and the Risk:Reward ratio is always 1:4. For a winning position that hits full TP it can take anywhere between 10 to 40 days.
Now for US shares like Costco for example the Daily rolling spread is around 12 pips but the quarterly spread is 90 pips. So which one should I go for?
Lets say I risk £100 to potentially make £400 on a BUY trade.
So Share "A" has SELL at 9000 and BUY at 9010 (Daily Rolling)
Share "A" has SELL at 8950 and BUY at 9050 (SEPT 14)
If I go for Daily Rolling I would enter BUY trade at 9010 with SL at 8910 and TP at 9410.
So lets say the trade took 20 days to hit TP. Would my account show a £400 increment or would I have incurred daily charges and my account would show a much lesser increment and how much??
I cant find any examples on the net so if you can make some up and help me understand the difference between DAILY ROLLING and MONTHLY or QUARTERLYthat would be awesome.
I don't like the big spreads that come with Quarterly or monthly deadlines. It makes it more difficult or impossible for me to achieve the 4:1 R:R with that kind of spread
I have started learning to trade US and UK shares on IG Index. The spreads for Daily Rolling is much lesser then a quarterly contract. I am confused which one to go for.
Let me explain my strategy. Its an End of Day trend trading method and the Risk:Reward ratio is always 1:4. For a winning position that hits full TP it can take anywhere between 10 to 40 days.
Now for US shares like Costco for example the Daily rolling spread is around 12 pips but the quarterly spread is 90 pips. So which one should I go for?
Lets say I risk £100 to potentially make £400 on a BUY trade.
So Share "A" has SELL at 9000 and BUY at 9010 (Daily Rolling)
Share "A" has SELL at 8950 and BUY at 9050 (SEPT 14)
If I go for Daily Rolling I would enter BUY trade at 9010 with SL at 8910 and TP at 9410.
So lets say the trade took 20 days to hit TP. Would my account show a £400 increment or would I have incurred daily charges and my account would show a much lesser increment and how much??
I cant find any examples on the net so if you can make some up and help me understand the difference between DAILY ROLLING and MONTHLY or QUARTERLYthat would be awesome.
I don't like the big spreads that come with Quarterly or monthly deadlines. It makes it more difficult or impossible for me to achieve the 4:1 R:R with that kind of spread
Last edited: