Pssst. Anyone interested in two hot tickets to the FXWeek show? Scalping in FX
TraderTools’ rarely comes across retail oriented customers as our primary market is mostly FX sell side banks and brokers with institutional clients. Still, it is often instructional to keep up with what is going on in the retail space, at least to contrast it with our own market. That is why I found this posting on scalping on ForexMagnates interesting.
We talk a lot about relationship pricing and how important it is for liquidity providers to understand their customers’ behavior and vice versa. We spend a lot of time talking to both sides of the trade to make sure the service through our aggregator is optimal for both provider and consumer. Our customers do not scalp first because it is not their business but second because they would quickly lose the great pricing we provide though our aggregator. It is just not worth it. I had understood that scalping was frowned upon in the retail market as well – at least by brokers who maintain an FX desk. This posting reports that this is no longer the case in the retail market.