collapse

Author Topic: Floating spread vs Fixed spread ?  (Read 486 times)

Offline Paul.Trafford

  • Full Member
  • ***
  • Posts: 220
Floating spread vs Fixed spread ?
« on: April 10, 2017, 09:54:21 AM »
Hi all,
I am curious which one are you preferring a Floating spread or a Fixed spread and why ? (If there is already a subject on this topic, then please remove mine as I wish not to spam the forum).

Online resistance

  • Sr. Member
  • ****
  • Posts: 633
Re: Floating spread vs Fixed spread ?
« Reply #1 on: April 10, 2017, 02:55:47 PM »
I am still using fixed spread than floating spread, because will more easy to manage the risk itself, but if floating spread which sometime on news time suddenly move on larger spread it making shocks and less useful for trading

Offline Paul.Trafford

  • Full Member
  • ***
  • Posts: 220
Re: Floating spread vs Fixed spread ?
« Reply #2 on: April 12, 2017, 11:21:21 AM »
I am a news trader, and still I am using floating spreads. Yes sometimes, market is a bitch and spread is a little bit high, but most of the time spread is pretty stable even during NFP or other major news release. But it is interesting for me how other people are using their spreads in their strategies.

Offline hybrid

  • Full Member
  • ***
  • Posts: 400
Re: Floating spread vs Fixed spread ?
« Reply #3 on: April 12, 2017, 08:00:34 PM »
Normally traders do trading with hey need not to calculate every time according to their plan how spread will deal. floating spread is liked by professionals , they can adjust their trading as market is going they can use floating spread easily.

Offline tugatrader

  • Jr. Member
  • **
  • Posts: 26
Re: Floating spread vs Fixed spread ?
« Reply #4 on: April 12, 2017, 09:28:46 PM »
I am a news trader, and still I am using floating spreads. Yes sometimes, market is a bitch and spread is a little bit high, but most of the time spread is pretty stable even during NFP or other major news release. But it is interesting for me how other people are using their spreads in their strategies.

Isn't it better to trade news using fixed spread because of the higher volatility of some events?

Offline Paul.Trafford

  • Full Member
  • ***
  • Posts: 220
Re: Floating spread vs Fixed spread ?
« Reply #5 on: April 13, 2017, 09:38:21 AM »
I am a news trader, and still I am using floating spreads. Yes sometimes, market is a bitch and spread is a little bit high, but most of the time spread is pretty stable even during NFP or other major news release. But it is interesting for me how other people are using their spreads in their strategies.

Isn't it better to trade news using fixed spread because of the higher volatility of some events?

Well yes it is, but usually after a huge news, the market has a restoring process where the price is restoring to the normal value before the news (I called it backwards movement) which most of the time is equal to the movement created by the news release, it is just in the opposite direction. The important thing is that at this point ( the restoring process) the spread is normal, thus I allow myself to speculate a little bit with my volume and compensate for the wide spread at the beginning. I hope this make sense for you. Cheers mate!

Offline drunkfx

  • Sr. Member
  • ****
  • Posts: 576
Re: Floating spread vs Fixed spread ?
« Reply #6 on: April 14, 2017, 09:25:30 PM »
Are you talking about a pullback? I'm using same strategy but the problem is its difficult to gauge the news impact sometimes it may form new trend so waiting for a pullback may be pointless, since the data changed the game..

Offline iMusingKiMi

  • Sr. Member
  • ****
  • Posts: 723
Re: Floating spread vs Fixed spread ?
« Reply #7 on: April 17, 2017, 01:24:07 AM »
Hi all,
I am curious which one are you preferring a Floating spread or a Fixed spread and why ? (If there is already a subject on this topic, then please remove mine as I wish not to spam the forum).

I believe I trade fixed spreads back to at least 8 years ago. No real markets will give you fixed spreads anymore, that's what I can tell you, and you can start to guess what I mean.

Offline Paul.Trafford

  • Full Member
  • ***
  • Posts: 220
Re: Floating spread vs Fixed spread ?
« Reply #8 on: April 18, 2017, 09:42:15 AM »
Are you talking about a pullback? I'm using same strategy but the problem is its difficult to gauge the news impact sometimes it may form new trend so waiting for a pullback may be pointless, since the data changed the game..

Yes the pullback. And yes sometimes the market is forming a new trend, but the case is often rare. Why ? Creating a new trend from e sharp movement on the market caused by a huge news release is a very rare condition, it is happening sometimes, this is why I am not a millionaire yet. Cheers

Offline MadBob

  • Jr. Member
  • **
  • Posts: 16
Re: Floating spread vs Fixed spread ?
« Reply #9 on: April 20, 2017, 05:39:54 PM »
Another complication is which trend you are looking at. Many times there is an up trend on the 5 minute and down trend on 1 hour, up trend on daily and a down trend on monthly. That is why Forex is difficult

Offline Corey Anderson

  • Jr. Member
  • **
  • Posts: 65
Re: Floating spread vs Fixed spread ?
« Reply #10 on: April 21, 2017, 07:01:37 AM »
I seem, fixed trading spread is comfortable to use! My favorite trading style is scalping, so every single pip is very important calculation for me; but unfortunately I have seen, maximum Forex brokers increase their trading spread during high volatility of market! So, I was in a problem in my early stage of trading because of floating trading spread issue!

Offline Adam Milne

  • Jr. Member
  • **
  • Posts: 26
Re: Floating spread vs Fixed spread ?
« Reply #11 on: April 26, 2017, 03:02:50 AM »
I favor fixed spreads because I dont know any advantage of floating spreads. Well I think floating spreads may cause trader to make bad entry, especially buy entry.

 

browse forum