Scalping. The reality of it?

[Sheldon]

I've seen a few brokers offering 1 pip spreads on the major currencies. I've been using crownforex's demo account and scalping the USD/JPY while watching the tick and 5 min chart. It was too easy to make profits, so I knew something was up.

I called them on it, and they said the 1-pip spread isn't always available and they don't allow scalping in their real accounts. I'm confused and a little annoyed on the subject. I knew it was too good to be true!

How is it that people can still churn profits with a 2+ pip-spread? What brokers allow scalping?

Sheldon

[mister_doodi]

InterbankFX allowed us to scalp with a $75k account. Opened and closed a lot of them within a minute.

http://vps.crohost.com/~misterdo/www..._group/all.htm

[techno791]

Originally Posted by mister_doodi

InterbankFX allowed us to scalp with a $75k account. Opened and closed a lot of them within a minute.

http://vps.crohost.com/~misterdo/www..._group/all.htm

Are you going to close these two?

11899643 2007.01.03 15:36 buy 2.50 eurusd 1.3188 0.0000 0.0000 1.2946 0.00 0.00 -124.65 -6 050.00
11903157 2007.01.04 04:27 buy 2.50 eurusd 1.3176 0.0000 0.0000 1.2946 0.00 0.00 -68.01 -5 750.00

Of course I made .83 cents tonight. Dollar/Yen. It was up 4-5 pips, but when I sat down, saw it wasn't moving, noticed that every pip was worth .83 cents, I just let the other $2.49 go. Big money here tonight! 1 mini lot, watch out.

I've been wondering if someday they'd flag me for trading like that as a scalp. But on a standard lot, 3 pip spread, isn't that $25 in commision basically? What would be the problem unless there's THAT much administration involved settling these trades?
It's not like I do that frequently, which was my originally intention, but I'm doing less trades in forex than I was in the stocks. Weird.

[Sheldon]

Originally Posted by mister_doodi

InterbankFX allowed us to scalp with a $75k account. Opened and closed a lot of them within a minute.

http://vps.crohost.com/~misterdo/www..._group/all.htm

Thanks for answering Doodi.

Is that sheet your real account or a demo? How fast are your orders executed? Do you ever get slippage or a re-quote?

Does InterbankFX have a tick chart as well as a candlestick? Something like this:



Thanks again.

[mister_doodi]

Those open orders are not my trades. And yes it's a standard live account.

Metatrader is not a broker specific program they are only branded with the broker's icons. So, interbankfx and crown has the same program.

[Sheldon]

Thanks again Doodi.

I am playing with the InterbankFX demo now, and the spread is 3 pips on the USD/JPY. Does this ever tighten?

[mister_doodi]

When there is an imbalance between buyers and sellers it tightens for few seconds but it usally stays at 3 pips.

[Sheldon]

Scalping with 3 pips vs. 1 is a huge difference. Also I notice the tick charts differ a lot, which makes it harder on InterBankFX. Is there anyone to customize them?

Crown



InterbankFX



See how the range is so much bigger on the Crown tick chart, why is that? Do the prices actually move that much or is it just for 'show'?

[mister_doodi]

Crown is a pure dealing desk broker and Interbank is a dealing desk/ecn hybrid. Crown's properity system or their liquidity provider might be giving you weird quotes and Interbankfx's quotes are what you see normaly on most platforms like Oanda and GFT because of the ECN factor.

[mister_doodi]

http://www.goforex.net/reviews/crown-forex.htm
http://www.forex-ratings.com/comments.php?site_id=238
http://www.forexbastards.com/crownforex.shtml
http://www.elitetrader.com/vb/printt...threadid=74623