Worldspreads upgraded!

[FXSCALPER2]

It is in dubious taste to say, 'I told you so', so I am gonna say it . I have been telling you this until I was blue in the face gle. The idea that WS was going to offer a one pip spread, instant execution and allow scalping on instruments like GBPUSD looks like a bad joke to me. I could personally take them to the cleaners PDQ if they allowed that.

 

[JTrader]

It is in dubious taste to say, 'I told you so', so I am gonna say it . I have been telling you this until I was blue in the face gle. The idea that WS was going to offer a one pip spread, instant execution and allow scalping on instruments like GBPUSD looks like a bad joke to me. I could personally take them to the cleaners PDQ if they allowed that.

From following several spreadbet threads on T2W, the recurring thing that spreadbet companies don't seem to like, is when clients place many trades per day, maybe 10 or more is deemed as many ??

I would rather make the same level of profit, averaging 4 trades per day, rather than 10 trades per day, as this involves less stress.

 

[Phil Mibbutz]

Surely the more trades punters place, the more money they make from the spread? WS in particular must benefit from this, because their profit must be coming from spread, the hope being that their overall position will be flat on each market, so no hedging necessary.

 

[JTrader]

Surely the more trades punters place, the more money they make from the spread? WS in particular must benefit from this, because their profit must be coming from spread, the hope being that their overall position will be flat on each market, so no hedging necessary.

Good point.

 

[JTrader]

WS also have a system in place whereby you have to wait at least 10 seconds between trades. Presumably this is a sign of them or their system not liking clients entering a trade, and then immediately exiting the trade, or exiting and then immediately entering a new trade?

 

[gle101]

Surely the more trades punters place, the more money they make from the spread? WS in particular must benefit from this, because their profit must be coming from spread, the hope being that their overall position will be flat on each market, so no hedging necessary.

Yes I agree with your viewpoint. Another point to consider is is the following. Mathematically the wider the profit target, the lesser the significance of the spread. The odds are in fact not in your favor, for traders that go for a short term profit. So I really don't understand the SB companies dislike for scalpers, besides of course, if they happen to have a problem with lagging quotes.

 

[JTrader]

Yes I agree with your viewpoint. Another point to consider is is the following. Mathematically the wider the profit target, the lesser the significance of the spread. The odds are in fact not in your favor, for traders that go for a short term profit. So I really don't understand the SB companies dislike for scalpers, besides of course, if they happen to have a problem with lagging quotes.

Another good and valid point, more profits through spread/commissions, and the reason you mention above, are 2 reasons why you'd think SB companies would be more tolerant of short-term traders.

Another thing to consider, is just because a trader trades off a very shrt timeframe, doesn't mean they have to make more trades than they would do on say double the timeframe.

Wouldn't it be nice to be able to trade off the same/current timeframe, make half the number of trades (pay half the amount in spreads) with more precise entries, have a better rato of winners:losers and make the same profit levels?

If so, ask if and how this can be done effectively.

If this is not possible, perhaps increasing the timeframe, may provide part of a solution.

 

[gle101]

From following several spreadbet threads on T2W, the recurring thing that spreadbet companies don't seem to like, is when clients place many trades per day, maybe 10 or more is deemed as many ??

I would rather make the same level of profit, averaging 4 trades per day, rather than 10 trades per day, as this involves less stress.

Yes you sure got a point here, that is if the outcome in profit is the same.

 

[Phil Mibbutz]

An account at Two Way Futures might be the answer, but it puts me off that you have to put £5k into a Gibraltar based company to see how well it works in practice (see brokers thread).

 

[FXSCALPER2]

You guys are missing the point! Firstly, consider that there are some (scalping) winners in the markets (however limited). Then consider that there are two or more market makers (mms) who offer the same service. At one of these mms (and only there), these traders are offered instant execution, 1 pip spreads and are allowed to scalp as much as they like without paying any commission. What do you think will happen to that mm if they actually allowed this stuff to happen? Once you get the answer to that, then consider what you would do to avoid being wiped out if you were running that mm? I mean, seriously...!!

For those of you who believe making money scalping GBPUSD on a 1 pip spread all day long is not easy, believe me it is extremely easy. Why do you think the guys stop you from doing it?

 

[JTrader]

For those of you who believe making money scalping GBPUSD on a 1 pip spread all day long is not easy, believe me it is extremely easy. Why do you think the guys stop you from doing it?

Hi

I don't think I'd find scalping EURUSD with a 1-pip spread easy, even with a 0-pip spread, picking the right direction, using stop-losses, and being profitable, may still be harder than it sounds!

I've never traded GBPUSD. Is there any reason why scalping cable all day on a 1-pip spread might be easier than scalping EURUSD?

Thanks a lot.

 

[FXSCALPER2]

No, Jtrader, it is easy to scalp with a 1 pip spread. Anyway, the point isn't it is easy for everyone. The point is WS cannot afford to actually allow instant execution and scalping on a one pip spread and no commissions all day long, which is why they don't.

It is 'easier' to make money scalping more volatility, of course. (

Hi

I don't think I'd find scalping EURUSD with a 1-pip spread easy, even with a 0-pip spread, picking the right direction, using stop-losses, and being profitable, may still be harder than it sounds!

I've never traded GBPUSD. Is there any reason why scalping cable all day on a 1-pip spread might be easier than scalping EURUSD?

Thanks a lot.

 

[FXSCALPER2]

Here is a quote from DannyA at WS:

"we generally dont encourage scalping on the platform and most of the people who do this are put on bet referall sir...we give people the benefit of the doubt to start with and if they keep on scalping then we put them on referall"

And this makes perfect sense to me.

 

[JTrader]

Here is a quote from DannyA at WS:

"we generally dont encourage scalping on the platform and most of the people who do this are put on bet referall sir...we give people the benefit of the doubt to start with and if they keep on scalping then we put them on referall"

And this makes perfect sense to me.

Hi

What seems to be the WS definition of scalping?

Exiting trades very soon after entering?

10+ trades per day?

Thanks.

 

[FXSCALPER2]

Hi

What seems to be the WS definition of scalping?

Exiting trades very soon after entering?

10+ trades per day?

Thanks.

DannyA: we consider anything inside of 5mins to be scalping
me: good
DannyA: so if you hold positions longer than 5 mins you will never be put on referall
me: if i make 10 10 minute trades a day, that is fine, whether I win or lose?
DannyA: absolutley
me: thanks, Danny

 

[gle101]

DannyA: we consider anything inside of 5mins to be scalping
me: good
DannyA: so if you hold positions longer than 5 mins you will never be put on referall
me: if i make 10 10 minute trades a day, that is fine, whether I win or lose?
DannyA: absolutley
me: thanks, Danny

When took this conversation place?

 

[JTrader]

DannyA: we consider anything inside of 5mins to be scalping
me: good
DannyA: so if you hold positions longer than 5 mins you will never be put on referall
me: if i make 10 10 minute trades a day, that is fine, whether I win or lose?
DannyA: absolutley
me: thanks, Danny

Thanks

that seems a bit of an unfair distinction to make between a scalper and the rest.

Perhaps you only make 4-5 trades per day, sometimes you may hold for an hour, but if price goes against you, you want to get out within minutes or sometimes seconds, however long or short this time period is.

With forex for example, in many instances, whether you primarily scalp or not, a key part of a strategy will be to enter and exit a trade within a short time period, after a breakout for example. Five minutes later, and the profit that was available may well have evaporated and become a big loss.

At least this definition is consistent with the theory that WS make their profit through the spread, and the more a client trades, the more comission they make through the spreads.

All spreadbet companies should accept the fact that many traders will want to enter and exit trades within 5-minutes, and this should be accepted and welcomed without discrimination.

 

[FXSCALPER2]

When took this conversation place?

About three hours ago

 

[FXSCALPER2]

Thanks

that seems a bit of an unfair distinction to make between a scalper and the rest.

Perhaps you only make 4-5 trades per day, sometimes you may hold for an hour, but if price goes against you, you want to get out within minutes or sometimes seconds, however long or short this time period is.

With forex for example, in many instances, whether you primarily scalp or not, a key part of a strategy will be to enter and exit a trade within a short time period, after a breakout for example. Five minutes later, and the profit that was available may well have evaporated and become a big loss.

At least this definition is consistent with the theory that WS make their profit through the spread, and the more a client trades, the more comission they make through the spreads.

All spreadbet companies should accept the fact that many traders will want to enter and exit trades within 5-minutes, and this should be accepted and welcomed without discrimination.

Fistrly, we should really get rid of the laughable idea that WS will make money from the (1pip)spread.

Secondly, I am sure WS will watch you and put you on referal if you are a persitent scalper, rather than someone who gets out of trades in five minutes from time to time.

 

[gle101]

About three hours ago

Thanks, yes this statement was kind of interesting. Did you call them up? The way you have presented the conversation it looks like a chat.