[PittsburghFX]

Okay, scalpers here it is, the truth. Your broker hates you, period. All brokers no matter who you trade with, hate you. All brokers hate scalpers and quick pickers. If you don't believe me, ask anyone on the forum about Dealer intervention.

The fact of the matter is that when trading mini lots, everything aggregates together. This may take anywhere from 20 seconds, to 5 minutes depending upon what clients are trading. If 80% of clients are Net Long Euros, then realistically there is not enough internal volume for any company no matter how big, which means the broker will have to go to the Interbanks to offset. Realistically, all brokers do not really want to use the Interbank, internal is the best. So when brokers go to the Interbank to offset their clients 80% net position, they then get what is called in the industry a "FU" price. I think you understand what I mean.

So lets say 2 minutes before NFP, clients are 80% long Euros, everything comes to whisper quiet before numbers, there is the broker with the hand in the cookie jar with a Huge Net position opposite to the clients. Most if not all offset that because the brokers job is to make the spread, holding that net position is way too risky for any broker to take on, unless they are themselves agreeing with their position from their own analysis.

Eur is trading at 1.2400 lets say, and the clients net average position is around 1.2395, the Interbank will let the broker offset at lets say a 30 pip range from that, so thats quoting 1.2425/1.2365 This is what is called a "FU" price. Which means it is not realistically offsettable unless you simply want to get rid of everything.

For pickers and scalpers you are not providing liquidity. Thats the market makers job, if anything you are using up liquidity because odds are 95% of everybody else is doing the same thing you are. Doesn't meant you or anyone else makes money at it, but "Crowds" tend to form for directions. Most times clients are wrong. If anyone had access, I would ask what is your clients net long or short and do the opposite.

Also, if for example the clients are right and 80% are correct then the brokers get killed holding the cookie jar, of course unless they offset at an "FU" price.

So when the market is gapping 20 pips at a time, scalpers and pickers get in and get out before the broker has time to either match you up or offset your position at the market price just making the spread. Do not scalp and do not pick. All brokers watch for that because they do lose. They simply do not have enough time to aggregate everything together, no one does.

I have had to talk to pickers for many days at a time. Automatic execution is a privlige, do not abuse it. If you think you found a really quick EASY way of making trades, then your broker will shut you down. I saw a guy made six figures in 15 seconds, the true market prices never ever traded there. Trade was revoked because what is too good to be true, always is. There is no secret of getting around this, unless you have been in my shoes, but that is something I would never tell. I won't slice my own throat!