Spot GBP/USD

[MayZerG]

Has anyone been trading in this the past few days?
Some pretty big swings!

Do you think it'll continue to rise overtime?

And why does it seem at the start that im -£ a few in a trade the first 1-3 seconds? Is that what IGIndex charges me or something? For the stop-loss?

(I have a limited risk account)

 

[rawrschach]

It is the spread that you pay for putting the position on...commission basically.

 

[MayZerG]

Ahhh thanks, does that always have to be paid? Like even standard accounts pay it?

Find it really bad considering at £1 a point and say the spread is 3, that means you gotta be atleast 3 points up just to breakeven...

 

[rawrschach]

Yes, always.

 

[shadowninja]

The limited risk account has a larger than usual spread... but you get guaranteed stop loss. If we get another 9/11 or 7/7 you'll be grateful for the GSL but for everyday use, I think the larger spread will cost you more in the long run, assuming you're trading long enough.

I don't know how far it spiked, but from memory, I've been told it slipped around 200 pips on 7/7.

 

[graemenash]

Surely you shouldn't really be trading a live account if you don't even understand a basic concept like spread?

 

[Claudia123]

Has anyone been trading in this the past few days?
Some pretty big swings!

Do you think it'll continue to rise overtime?

And why does it seem at the start that im -£ a few in a trade the first 1-3 seconds? Is that what IGIndex charges me or something? For the stop-loss?

(I have a limited risk account)

Just thank god you have a limited risk account!! They charge you 3 points spread on cable and extra for guaranteed stop. You always get big swings on major currency pairs - i like usd/chf quite easy to trade. Think you got a lot of learning to do!!

 

[MayZerG]

I learn very quickly .

And im only trading for like 10-30 minutes. So i dont really see the point of having a slightly larger spread or stop loss

 

[rawrschach]

If something happened and you got filled 300 ticks away because of a non guaranteed stop you would.

Guaranteed stops are the only reason I'd consider trading serious money with an SB firm.

 

[TheBramble]

If something happened and you got filled 300 ticks away because of a non guaranteed stop you would.

Guaranteed stops are the only reason I'd consider trading serious money with an SB firm.

A guaranteed stop will not protect you against a rampant fill on entry.

Most SBs also have clauses in their small print protecting them (like they need it) from honouring guaranteed stops in certain market conditions. Notrmally the sort of fast market conditions where you need a guaranteed stop.

 

[shadowninja]

A guaranteed stop will not protect you against a rampant fill on entry.

Most SBs also have clauses in their small print protecting them (like they need it) from honouring guaranteed stops in certain market conditions. Notrmally the sort of fast market conditions where you need a guaranteed stop.

You know... that really sucks... and I can believe it. "With all flights, please be assured that each passenger will have their own parachute. In the event of an incident, please note that you are to place your parachutes in the box by the door before jumping out." :cheesy:

 

[shadowninja]

I don't remember the price action being all that fierce though (and I was trading sterling crosses in large size that morning exiting a load of the firm's short term positions so we could evacuate the office). Think 9/11 price action was a different story from what I can recall.

Wasn't day trading on 7/7. (Actually, I was busy in hospital recovering from a bowel op.)

And 11/9 ( ) I was only buying and selling shares.