FXCM's Price Improvements for Scalpers | Forex Trading

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Price Improvements while Scalping

FXCM has recently enhanced its No Dealing Desk Forex execution model. It now includes Price Improvements, which can help scalpers make more money than before.
A scalper typically tries to gain only a few pips with each trade that they place. This means their average return per trade may be as low as 1 or 2 pips. And because of this, they often place tens, hundreds or even thousands of trades within a single day. So for scalpers, it's the little things that matter most. And every pip counts!
Consider a trader who has placed 25 trades. This table shows the hypothetical profit and loss for each of those trades. Twenty one were profitable and four were not profitable. The net profit for all 25 trades was 42 pips or $42, assuming a 10K trade size was used. Now, there is no guarantee that an order will receive a price improvement, but for illustration purposes, let's consider a few alternate scenarios.
How would the net profit change if a price improvement of 1 pip was received on one of these trades? What about if two trades received a 1 pip price improvement? What if two trades had received a 2 pip price improvement? So scalpers, a price improvement could mean an extra 1 or 2 pips in your pocket or an extra 3 or 4 pips in your pocket. Over the course of tens or hundreds of trades, price improvements could mean lots of extra pips in your pocket. Additional pips here and there; which scalper wouldn't be happy with that?
Increasing your chance of receiving a price improvement can be done in a number ways. FXCM recommends opening trades with limit entry orders and closing trades with limit orders whenever possible. Because these order types only fill at your requested price, or a better price. While other order types can also receive price improvement, they can also experience negative slippage if a better or requested price is not available.
And that's price improvements. If a more favorable price than the price you requested becomes available before your trade executes, FXCM will always give you the best available price. These prices include our markup, which may vary based on account type and liquidity provider. Price improvement is subject to order type, size and available liquidity.

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