Scalping: what's your honest reality check?
Scalping looks like fast money and behaves like slow bleed for most who try it: the spread and commission eat a large share of every win, and the speed punishes hesitation. A few make it work with ruthless discipline.
Scalpers, share the truth:
- your win rate and average win versus loss
- what the costs do to your net per trade
- the temperament that scalping actually demands
The trading costs guide shows why costs dominate at this time frame.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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