Scalping and Slippage
The slippage problem is a known problem. One possible solution is trading Futures instead of CFDs. Many of them (S&P etc.) have a slippage of 1 tick. And some sculping-strategies can be used with limit-orders which solves the slippage problem too.
It is crucial to have the best spread possible when scalping.
You can improve your trading conditions by using a few strategies and ideas.
It is so damn important having an eye on slippage while scalping.
In trading, slippage is important because it can affect the overall profitability of a trade. If a trade is executed at a worse price than expected due to slippage, it can reduce the potential return on the trade. On the other hand, if a trade is executed at a better price than expected due to slippage, it can increase the potential return on the trade.
Therefore, traders should consider the potential for slippage when evaluating the risk and reward of a trade. Some traders may try to minimize the impact of slippage by using limit orders or by trading in more liquid markets. It is also important for traders to carefully consider the potential impact of slippage on their overall trading strategy and risk management plan.
The slippage problem is a known problem. One possible solution is trading Futures instead of CFDs. Many of them (S&P etc.) have a slippage of 1 tick. And some sculping-strategies can be used with limit-orders which solves the slippage problem too.
In general, futures are a possibility to save costs. Correct. But futures trading is also about VOLUMES - like in the spot market as well, several institutional players might FIGHT for the same futures price. Accordingly, you use either an AGGRESSIVE algo which accumulates your futures volume in NANO-SECONDS (not Mili-Seconds - Nano Seconds it is).
Try to execute 1000 futures contracts on the CME at one price point - won´t happen. There is NOT ENOUGH volume there. You may find the volume at certain resistance or support points, though. But that happens RELATIVELY RARELS from a statiscal point of view.
Thus, futures trading is also about VWAP and TWAP (volume weighted average pricing OR time weighted average pricing).
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Hello Scalpers,
I am wondering if scalping can be profitably due to slippage using one of the major CFD brokers out there scalping indices such as the SP500 or the NASDAQ on a 5 seconds timeframe? Any experiences? Also, if one is using BuyStop orders do they really have a chance to be executed at the desired price at a timeframe of 5 seconds? Same applies to Stop Losses in form of market sell orders.
thank you for sharing your experiences!