gle 101, if i remember rightly worldspreads fx stops1 pip spreads at 4pm , there's a lot of action left , i'd say almost to 9 pm when U.S. starts to close, obviousley some days are busier than others but in essence this is true ???correct me if i'm wrong!!!
Directional
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henry766 said:
If a pip *really* matters then you wouldnt be using a spreadbet firm, you'd trade the underlying instead.
Especially all the DAX/FTSE traders, since WS quote full points, when the underlying is in half tick increments
Since the 5,12,06. I have placed over 60 trades, so you could call it short term swing trades. I could be in a trade from 5mins to 3 hours. I only trade the Dow with WS, the fills and the speed are a big improvement on how they used to be. I must say, it have shocked me how fast the fills and how the fast the prices change, they are in line with the underling market on the YM tick for tick.gle101 said:
" If a pip *really* matters then you wouldnt be using a spreadbet firm, you'd trade the underlying instead.
Especially all the DAX/FTSE traders, since WS quote full points, when the underlying is in half tick increments "
An excellent piece of advice Arbitrageur if you trade at £10 a point and above,but what if you don't ?
What if you are a new trader or a trader struggling to make it ?
Lets do some basic maths to reinforce the point ( sorry about the pun ) I am trying to make :-
Let's assume a 10 point gain / target ( I trade ftse / dax futures )
You pay 1 point spread = 10% advantage to the Spread boys.
They sometimes " skew " the price 1 point ( e.g move the spread above the underlying at buy time and underneath at sell time )
This can in actual fact amount to more than 1 point.
So another point there so 2 points to overcome = 20% advantage to the Spread boys.
They shave a point off you at closing bet time, so 3 points = 30 % advantage to the spread boys.
This is an impossible edge to overcome for a lot of traders.Most forms of gambling games have an edge a lot less than this.No wonder most traders lose.
I realise that for the educated there is nothing new in this but for those that don't think a point here or there doesen't matter you are just kidding yourself.
Especially all the DAX/FTSE traders, since WS quote full points, when the underlying is in half tick increments "
An excellent piece of advice Arbitrageur if you trade at £10 a point and above,but what if you don't ?
What if you are a new trader or a trader struggling to make it ?
Lets do some basic maths to reinforce the point ( sorry about the pun ) I am trying to make :-
Let's assume a 10 point gain / target ( I trade ftse / dax futures )
You pay 1 point spread = 10% advantage to the Spread boys.
They sometimes " skew " the price 1 point ( e.g move the spread above the underlying at buy time and underneath at sell time )
This can in actual fact amount to more than 1 point.
So another point there so 2 points to overcome = 20% advantage to the Spread boys.
They shave a point off you at closing bet time, so 3 points = 30 % advantage to the spread boys.
This is an impossible edge to overcome for a lot of traders.Most forms of gambling games have an edge a lot less than this.No wonder most traders lose.
I realise that for the educated there is nothing new in this but for those that don't think a point here or there doesen't matter you are just kidding yourself.
Phil Mibbutz
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Arbitrageur explained what I was getting at about the importance of 1pt spreads. There's plenty on T2W boards about the problems you may encounter scalping with WS.
" Thanks for your reply Atilla.In fairness the 1 point spread is brilliant and market leading "
This is what was in my reply to Atilla a couple of posts ago,we are all in agreement 1 point
spreads are important.My post is specific to price shaving on closure.You say there is plenty
on scalping with W/S on these boards,perhaps you could enlighten me, a search with " shaving " and " ws " brings up nothing relevant.Do I take it that you have not experienced this happening to you then Phil ?
This is what was in my reply to Atilla a couple of posts ago,we are all in agreement 1 point
spreads are important.My post is specific to price shaving on closure.You say there is plenty
on scalping with W/S on these boards,perhaps you could enlighten me, a search with " shaving " and " ws " brings up nothing relevant.Do I take it that you have not experienced this happening to you then Phil ?
Phil Mibbutz
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WS (allegedly!) has a policy of either banning or making life difficult for customers who scalp on short time frames, which I assumed is what you are doing.
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