Last week the scumbag bank LPs really put on a show in how to screw people
in tight ranges … first they slow VIX down, then the go to the “variable bid/offer
spread game” bullshit that sees variable spreads go up/down like a penny stock
in Vancouver … then they hand out slippage on fills that would choke a horse to
death … and quite frankly folks, it’s getting worse not better as they seek to
maximize profits in an ever more competitive environment.
I’ve mentioned before how it’s vital to know how your brokerage house makes
its money … you get a house like IQCENT offering markets like crypto and
EURUSD with the lowest cost to trade anywhere, and it begs the question … and
what I’ve said is that if you watch any of those markets, you’ll notice price
discrepancies on spikes [up/down makes no difference], where the LP makes
people pay for the privilege of buying an up spike or selling a down spike … in
EURUSD it can be anywhere from 0.2 - 1.0+ PIPS depending on the speed of the
spike, and then the “basis” comes back in to near zero very quickly … and if
you buy the dip & sell the rip, or vice versa, it’s a scalpers dream scenario cuz
you make a little bit extra on your scalps … and if your late to the rally or break
and are on the other side of things, you just had a pinch of salt rubbed into that
stab wound in your back … and so, bottom line is losers pay the freight, and
since there are far more losers than winners, from the house & LP perspective
what’s not to like? … in the collective, there simply aren’t enough guys like me
showing up every day and ringing the register in EURUSD TO MAKE THEM
CARE AT ALL! … please understand, IQCENT is unique in their approach to
pricing crypto & EURUSD, and I don’t know of another house that treats them
similarly … most houses are like Coinexx, and they hit you on 3 fronts
… bid/offer spread games, slippage on fills, and commissions, and they make it
“Hoover Dam” near impossible to scalp trade anything and consistently come
out ahead, even if you do everything near perfect!
As well, you always have to be on the lookout for a house that radically
changes the spread … IQCENT has done this with their “Stock Bellies” CFDs
… once some of the best spreads you’d find anywhere, that’s no longer the
case, especially in the NDX100 where the spread has more than doubled over
the Summer, from 0.7 index points to now 1.5 index points under the best of
circumstances with sometimes the spread going out to over 3 index points!
… and that only happens when too many traders are “picking the LP off” on
scalps in a very volatile market, and of course the LP doesn’t like that much
… they just double the spread [or more] + hand out some slippage and that
takes care of that problem “el quicko mucho”.From our perspective, we as
traders have to do “whatever it takes” to beat the house, and when given the
proper scalping advantages, use them!
Directly below, this week’s 20 Day Range MAs for selected markets.
I’ll get to binary options & silver next week … OUTTA HERE … “The future’s so
bright I need 2 pairs of sunglasses 😎😎, and my own Brinks armored truck” 💓!!
… Onward & Upward!!
-vegas
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