if u enter long at 1.9300 at that 2 kind brokers
then remember u use ASK price when u Long/Buy
so when we take Long price would be like this
MBT/IB = 1.9299/1.9300 <=== bid/ask
any Broker = 1.9299/1.9303 <=== bid/ask with 4 spread
we LONG at ASK price
we got 1.9300 price on MB/IB
we got 1.9303 price on another broker
then price go up 5 pips right ?
price on their console would be
MBT/IB = 1.9304/1.9305 <=== Bid/ask
Any Broker = 1.9304/1.9308 <=== bid/ask
then we close our position SELL at BID price
then we got this
MBT/IB = 1.9304 minus 1.9300 = 4 pips profit
any = 1.9303 minus 1.9304 = 1 pips profit
see the difference ?
remember price forex market are BID PRICE
so if u compare 2 or other broker or with reuters, they always nearly same BID PRICE (it is because connection lagging)
regards
Ridwan
then remember u use ASK price when u Long/Buy
so when we take Long price would be like this
MBT/IB = 1.9299/1.9300 <=== bid/ask
any Broker = 1.9299/1.9303 <=== bid/ask with 4 spread
we LONG at ASK price
we got 1.9300 price on MB/IB
we got 1.9303 price on another broker
then price go up 5 pips right ?
price on their console would be
MBT/IB = 1.9304/1.9305 <=== Bid/ask
Any Broker = 1.9304/1.9308 <=== bid/ask
then we close our position SELL at BID price
then we got this
MBT/IB = 1.9304 minus 1.9300 = 4 pips profit
any = 1.9303 minus 1.9304 = 1 pips profit
see the difference ?
remember price forex market are BID PRICE
so if u compare 2 or other broker or with reuters, they always nearly same BID PRICE (it is because connection lagging)
regards
Ridwan
DislikedWhat the hell are you talking about?
Of course, counting what you actually make is important. But did you not see my example?
Take 2 brokers
- MBT or IB
- Any broker with a fixed spread on the GBP of 4 pips (typical)
You enter longs on both brokers at the price of 1.9300 (at the ASK)...note that the BID at this point on the fixed spread broker is 1.9296. The BID at MBT is only 1.9299 (a 1 pip spread).
The ASK price goes up to 1.9305...
- The fixed spread broker's price is now 1.9301
- MBT's price is 1.9304
So you SELL your long positions in both brokers
- The fixed spread broker gave you a profit of 1 pip or $10...it's true 0% of that profit went to commissions
- At the SAME time, you sold at MBT at 1.9304 for a profit of 4 pips or $40. Then you pay $19.31 in commissions giving you a total profit of $20.69. Grant it, over 50% of your profits went to commission.
OK, genius...which trade would you have rather made?
Hmmm...which trade, which trade? do I take 0% commissions and make $10 or do I take 50% commissions and double my profit on the trade? 0% commission...double my profits...0% commissions or double my profits?? I can't decide!
(Man, I hope the reason I'm profitable is because I'm winning against this logic)
:-)
Again, not trying to necessarily root for MBT or EFX...IB was suggested yesterday, and they might be a good alternative...but come on here...why try to justify trading with a fixed spread broker against an ECN like MBT? I just don't get it.Ignored