you need at least 3-5 mill to open a margin account with banks like ubs or goldman but there are some places you can open an account with that offer great service with comparable spreads for a fraction of the account size
I"m just getting started w/ forex. I know some people who had problems scalping forex as you described. The forex dealers don't like this at all. Can you tell me where they draw the line roughly between daytrading and scalping (unethical) trading styles. I have no idea if it is the number of trades or how long you hold the trades. If I take no more than 20 pips of pain before and go for at least 20+ pips is this a problem? Any thoughts on this would clear things up for me as this seems to be a very grey area I would like to understand better. Thanks.
I've never heard of scalping being considered unethical (stupid maybe) by the interbank market. I've traded interbank F/X and prop. F/X for over 10 years. If you want to cross their bid/offer spread all day, you are more than welcome to do so. In quiet markets, a 1-2 pip spread is more like the norm now on size. Also depends on your reputation in the market and if they feel you are specifically out to 'hurt' them (ie. selling $100 million $/yen to 10 dealers simultaneously will not make you friends).
I am trying to trade less as my commissions just went up by 25 % guess I am making no friends out there with my dinky 1 lots
Sure G...the line is drawn when your scalping style starts to eclipse that of the trading desk. MAN those pig fuckers hate to lose...even when obviously out-traded.
IMHO, every bank worth its salt loves to make money churning little people to death. 3 point spread (in and out?) x 30 trades a day = dead little guy + smiling banker Guaranteed easy money is the best kind.
thanks for confirming what i originally thought. i am still learning the currencies, but sorta knew the scalping comment was not accurate. best, surfer
Smallest increment in a currency price move. The euro goes from 1.2160 to 1.2168 it has moved 8 pips. Minis are $1/pip, regular contract is $10/pip.