There's a problem with this theory, though. Take your example of FXPro. During the holidays, their spread increased--no big deal, most brokers do that. After the holiday, their spreads went back to normal for the majors. Their EURGBP spreads are still very low
during active trading hours.. However, during the quiet "scalping" hours, EURGBP goes up to 5 pips while the major pair spreads remain low.
Is the credit crunch only affecting EURGBP? That doesn't make any sense.
Quote:
Originally Posted by fxhst329
no, the spreads on the interbank market have not changed because of the scalpers. they've increased because of credit crunch and in retail brokerages... there are many reasons and this system is one of them. I was on the phone with the guy from FXPRO and I've asked about scalping. He told me that if people keep doing it, they'll just increase the spreads. They're simply loosing because of systems like these under current market conditions. So retails have to increase the spreads, institutional brokers... they don't really care about the system... they have different problems now...
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