Home >> Stock Forums >> how come i lose money if i

how come i lose money if i

squarepusher said: "buy and sell at the same time? for example, buy 1 lot, then immediately sell that same lot. you lose like $40 in a second, wtf!! that sucks"

Pb3190 said: "The bid-ask spread. I'm running out the door right now, I'll post a better reply when I get back."

squarepusher said: "[QUOTE=Pb3190]The bid-ask spread. I'm running out the door right now, I'll post a better reply when I get back.[/QUOTE] well, from what i learned last night, this is because of 'the spread.' However, I also hear about 'rebates' in which brokers reimburse you for each trade made."

Pb3190 said: "I have not read anything about rebates so far in my learning about forex, could you post a link to that for me? Thanks!"

squarepusher said: "this is a simple search [url]http://www.google.com/search?q=rebate+forex&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a[/url] but I have heard some brokers will give .5 pip per trade, and some in the google search were offering $4 or so, I guess to make up for the spread? im not sure how they do it really to be honest"

sjerar said: "[QUOTE=squarepusher]this is a simple search but I have heard some brokers will give .5 pip per trade, and some in the google search were offering $4 or so, I guess to make up for the spread? im not sure how they do it really to be honest[/QUOTE] It's easy to give rebates when your spread is big. For example on USD/CHF is the spread with some brokers 3 pip, while others have 5 pip spread. When you get 0.5 or 1 pip spread with the second broker then you still have 4 -4.5 pip spread. It's only a sales argument."