Can someone please tell me what the current spread is on eur/gbp and eur/chf in TWS(interactive brokers) or what the typical spread on these currencies in the asian session is, any help is appreciated, Jonny.
eur/gbp .88995-.89030 (yes, 5 pipettes no typo) so 3.5 pips spread, now at 2.5 eur/chf 1.5085-1.5089 so 4 pips spread, now at 7.5 Enough millions on both side for you ;-) I have no clue if it's typical. I took a very bad time to check, Japan is reopening I think.
thanks keops, would be good if there were an ECN broker with capped spreads, ECNs have low spreads but they can quickly increase, you wouldn't want to enter with a spread of 3pips, then when a exit signal is given you get screwed with a 7pip spread...
The ECN can't cap spreads. "They" dont offer you anything. They are just a bridge between market players. They show you what market makers at banks are quoting. So the spread is the result of different market players. I you want a specific price, use limits. It's not like in Forex with a shady market maker (Oanda, ibfx...) where you have to pay the spread, you can get hit at your price. And yes, with a market order you may get fked but if you wanted out fast, you are. Please anybody correct me if I'm wrong on the ECN thing.
You need to approach this differently. On an ECN or exchange... the spread is YOUR FRIEND... It's a source of trading income. Assuming you know what you are doing... You will make more money with 4 pip spreads than 2 pip spreads... Though at some point it starts working against you... Since very large pip spreads indicate poor liquidity. There is no reason on earth... Why an "exit signal" should panic you into donating 7 pips. Since all short-term trading is RANDOM and Normally Distributed... Working an exit with Limit Order is ALWAYS in your favor LONG TERM. Even if you are an actual monkey... In the long run you will end up paying about 50% of the spread... Instead of dumping 7 pips to a Market Maker. If you do not understand the last paragraph... Make it your business to understand it. But if you want to trade Forex around the spread OPTIMALLY... You MUST be be automated with competitive latency... Because most of your competition is.
"Since all short-term trading is RANDOM" Only seems that way to the in experienced trader and the untrained eye...