When Spreads and Commisions Become Painful

Discussion in 'Risk Management' started by alex.samant, Jan 5, 2010.

  1. \It seems nowadays that brokers go out and about offering you the lowest spreads possbile with or without commisions. And you think that the 1 point spread decrease your broker just offers you this month is really going to provide you with an edge.

    Well, first of all, your commisions or spreads are your handicap, in whatever quantity they are provided. They are the money the broker takes away from you to pay for it’s own services. Now, honestly, there’s no trading without costs like these. Even people who don’t pay commisions, have fees, like the cost of their seat on an exchange or the monthly trading room fee and so on… You need to know the impact these costs have on your trading and do something about it.....

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  2. DrEvil


    A very important and often overlooked point.