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Thread: Spread is scalping killer

  1. #1
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    Spread is scalping killer

    scalping is art of earning a few pips in a very short time by placing orders and coming out of positions easily. Normally scalpers target 5 pips, 10 pips. But they have to pay spread on each trade . If it is more than 2 pips, they find is hard to scalp well in the market. Brokers with one pip or less spread are good for scalpers as they can earn well due to less spread. So spread really kills scalping opportunity for scalpers. Do you agree with me or not ? share your views on this.

  2. #2
    Senior Member Victoria_'s Avatar
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    Yes some Brokers do not provide rebate for scalping... It is not really good.

  3. #3
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    Spread fee is helping brokers to control cashflow as well as I know since scalpers can make some money quite fast and I think It help broker to can controlserver too since as we must know scalping make lag in easily and It is not good in biz

  4. #4
    Senior Member Astroforex's Avatar
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    Quote Originally Posted by Victoria_ View Post
    Yes some Brokers do not provide rebate for scalping... It is not really good.
    We are not talking about rebate here, it's about spread. If we want to make money with scalping then it will be better if we use a forex broker company with less spread because every single pips is importarnt.

  5. #5
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    Quote Originally Posted by prawinkurdeg View Post
    scalping is art of earning a few pips in a very short time by placing orders and coming out of positions easily. Normally scalpers target 5 pips, 10 pips. But they have to pay spread on each trade . If it is more than 2 pips, they find is hard to scalp well in the market. Brokers with one pip or less spread are good for scalpers as they can earn well due to less spread. So spread really kills scalping opportunity for scalpers. Do you agree with me or not ? share your views on this.
    if you ended up making 10 pips(one position) and only pay for 2 pips for spread i think that is enough. Spread could be a scalping killer but in fact that is the commision for the broker, so that is why we need to trade carefully when we can to scalp with bigger spread or choose low spread currency like EUR/USD.

  6. #6
    Senior Member farwa bukhari's Avatar
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    Exactly spread can kills scalping.Traders should that broker which offers low spread for scalping.High spread in scalping could ruin your trades.So always choose broker with low spread for scalping.

  7. #7
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    Quote Originally Posted by farwa bukhari View Post
    Exactly spread can kills scalping.Traders should that broker which offers low spread for scalping.High spread in scalping could ruin your trades.So always choose broker with low spread for scalping.
    No No I think spraed fee is the profits of brokers too since they can earn much they offer good bonus to us too for me choose average and comfort spread is okay since scalper know well as they should earn aware too

  8. #8
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    Quote Originally Posted by Astroforex View Post
    We are not talking about rebate here, it's about spread. If we want to make money with scalping then it will be better if we use a forex broker company with less spread because every single pips is importarnt.
    If I were to scalp, I would choose to create an ECN account at reliable brokers. Spread is indeed low and we won't be worried about cost of pips.

    In my view, it is very dangerous to scalp in broker-dealer as that broker will manipulate orders to make scalpers lose if scalpers don't hurry to exit.
    Last edited by jackcm; 10-18-2013 at 06:08 PM.

  9. #9
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    Well, It depends on brokers, If a Broker does not provide rebate for scalping then obviously It is a wrong choice.

  10. #10
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    I think so. Spreads are opponent to scalper. Scalping is comfortable in low spread broker. It may 1 or less than 1. Because for every transaction, there is a cost for high spread. So spread is ultimately a scalping killer. Scalpers want to get 2-10 pips for every transaction. But if the spread is high, then it will be difficult for scalping to them.

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