Engineer Garin's Paraboloid - page 13
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OK, Alexey, I'll explain "my own fantasies" on my fingers.
We have Ask, Bid and Market.
The market is in the middle between Ask and Bid.
If you refer to quotations by the terms Bid and Ask, it would be logical (consistent) to use the well-established and commonly understood term "Midmarket" instead of "Market". Try it, I'm sure life will become easier and your ideas about writing off the spread in two steps will become clearer :)
Alexei, it's a matter of terminology, nothing more. You can consider that half of the spread is taken at opening and closing, or you can consider that the entire spread is taken at opening and nothing at closing. Again, the result does not change.
However, according to the rules used for equity calculation, the spread is considered to be charged at once.
The funny thing is that nothing is taken off before the position is closed. Swap, except...
The funny thing is that nothing is withdrawn until the position is closed. Swap, except...
If you look at equity, the spread is taken off immediately.
If you refer to quotations by the terms Bid and Ask, it would be logical (consistent) to use the well-established and commonly understood term "Midmarket" instead of "Market". Try it, it will make your life easier and your idea of writing off spread in two steps will become clearer :)
All right, I'll use midmarket. I will use midmarket.
Let's have a look. In Dimitri's example.
Dmitriy: We open an order. The spread is 13 p (new). We give 6.5 points to the market.
We close the order. Spread is 11 p. We give 5.5 points to the market.
The total result is 6.5 + 5.5 = 12 p. commissions.
I suspect that the spread withdrawn will be 13 pips, not 12.
So, it is a matter of principle. The difference between Dmitry's example and the reality (if it exists) will be particularly noticeable if we opened an hour before the announcements (spread is minimal), and closed it in the first minute after (huge spread).
P.S. If we look at the circumstantial evidence, it looks like Dimitri may be right. DCs don't like it if an order is placed a short time before the news. If the news is strong, this is often the most profitable time to enter, as the market is often "dead", with minimal spreads. Why?
What is the average probability of opening a continuous series of 10 identical losing lots?
Oh, no. Do you want to start that white bull story again and then run away?
I wonder how soon we will run out of people to buy into this cheap move.
I didn't even understand the question...
What is meant is the opening of lots according to a secret trader's methodology.
What is the average probability of opening a continuous series of 10 identical losing lots?
There is no such thing as a centrifugal force. By the way, profitable ones do not occur very often either.
There is no such thing as a centrifugal force. By the way, profitable ones don't happen very often either.
I'll tell you even more, the probabilities of losing and profitable ones are equal.