Why do the Pros Daytrade Futures? If your answer is “yes” and you are forex rebate in daytrading this is definitely an article you should take a minute to read.
50,000, that comes out to . Depending on the stock or currency pair you are trading the bid-ask spread may be much wider. Also, since Forex firms “create” the market and therefore, the bid-ask spread, they can widen it to whatever they see fit. Even when Forex firms advertise a fixed spread, they typically reserve the right to widen when they see fit. All trades are made available to the public on a first come, first served basis and trades must follow the CME Clearing rules, along with the strict CFTC and NFA rules. Traders with different firms can experience different fills even when trades are executed simultaneously.
Even more alarming is that in some cases the Forex brokerage firm you have an account with takes the other side of your trade and is therefore “betting” against you. This low transaction cost allows daytraders to get in and out of the market without commissions significantly cutting into their profits, but of course the more trading you do the more this will impact your bottom line. 5-10 per trade, which can really eat into your potential daytrading profits. This transparency of the market’s orders allows ES traders to see where and how many orders have been placed ahead of them.