Scalping

[Citizen2007]

I have read somewhere on these boards about traders who place a trade every minute or , they may end up placing several hundred trades a day.

How are their fees structured and what instruments would allow such trading? I am assuming its not done on forex because of the spread.

Thanks

 

[dcraig1]

Various futures markets eg DAX

On the DAX:

typically bid/ask spread is 0.5 point
1 point = 25 euros

With InteractiveBrokers round trip cost is about 3.1 euro, but big players will be paying substantially less.

PS The DAX is very unforgiving. Don't try this unless you are really convinced you understand it very well.

 

[alexander]

I have read somewhere on these boards about traders who place a trade every minute or , they may end up placing several hundred trades a day.

I wonder how can a retail trader profit at all doing several hundred trades a day even with the lowest commissions available.

Somewhere I heard this is called "noise trading" and eventually people that do it get ruined because it is more of an addiction but if I ever meet a successful trader doing it and I see real audited record where he makes substantially more than his broker then I will change my mind.

Alex

 

[RichieE]

I have read somewhere on these boards about traders who place a trade every minute or , they may end up placing several hundred trades a day.

How are their fees structured and what instruments would allow such trading? I am assuming its not done on forex because of the spread.

Thanks

My round trips are usually 100-150 per day trading energy on the ICE Exchange. However, most of my colleagues trade STIRs and I believe that they have many more round trips than I do.

Fees are per contract per side, however many people get 'rebates' (i.e. a 'volume discount') once you hit certain levels.

 

[gedward3]

Hi RichieE,

Are you trading calendar spreads on ICE Brent or have they attracted a lot of the black box and algo trading these days. I remeber the locals on the IPE years ago who would trade these solely and make good money.

Ged

My round trips are usually 100-150 per day trading energy on the ICE Exchange. However, most of my colleagues trade STIRs and I believe that they have many more round trips than I do.

Fees are per contract per side, however many people get 'rebates' (i.e. a 'volume discount') once you hit certain levels.

 

[DaxDestroyer]

Various futures markets eg DAX

On the DAX:

typically bid/ask spread is 0.5 point
1 point = 25 euros

With InteractiveBrokers round trip cost is about 3.1 euro, but big players will be paying substantially less.

PS The DAX is very unforgiving. Don't try this unless you are really convinced you understand it very well.

RE DAX
Yes, don't try this at home

 

[DC STOXX]

I wonder how can a retail trader profit at all doing several hundred trades a day even with the lowest commissions available.

Somewhere I heard this is called "noise trading" and eventually people that do it get ruined because it is more of an addiction but if I ever meet a successful trader doing it and I see real audited record where he makes substantially more than his broker then I will change my mind.

Alex

What you have said about the addiction thing is why you hear over and over again about people banging on about discipline.

A lot of traders make a decent living scalping and i have met multiple successful traders who trade in this style. For anybody unfamiliar of what scalping looks like take a look at this video on youtube...don't know who the trader is but he is scalping

YouTube - scalping the Dax

Most stock indices are good for scalping because of the volatility, if your new i would rec omened a sim though because you can loose a lot of money very quickly..then go wild with your first £50k account on the hang seng :whistling