Thanks to this person for sending on this topic of unknown dynamic bid ask spread which works against you for forex trading thanks to your broker
These are wise words from a very experienced trader in my community. This was sent out with the original email sent out yesterday so see below:
A couple of tips with MT4
- Not commonly known is that you can show both Bid and Ask lines on the MT4 platform chart. This way you can observe how you broker widens the spread often before the next candle is printed
Uncheck your grid lines – i.e. show grid,
Select the colour for the Bid line – ie select “Grid” in this case it is Aqua, and the ask line is Magenta
You can see the Bid (Aqua)/Ask (Magenta) spread on the chart below.
- Be aware that some brokers such as OANDA have a dynamic bid ask spread – which can also trigger you exits prematurely or miss your targets. There is also the issue of delayed orders. See attached file.
- Finally your readers should be aware of the different types of brokers ECN, STP, market makers (MM) and hybrids. This affects your execution as well – they MM and hybrid have two types of clients A=Book and B-Book – but that is for another time.
these are my results from testing and observation, there are nothing contrived here.
Just a heads up for those traders starting out should know that the odds stacked against them in this casino.
Here is another link that I encourage novice traders to view.
What Are Transaction Costs and How Do They Impact Your Algorithm’s Performance” Webinar
Understand bid ask spread price for forex trading success
Very important to under get the fundamentals of this otherwise you will be whining about your losses you cannot figure out,. Watch the video in this link as well
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!