adaseb wrote:Yes but aj doesn't have a $5000 account like most noobies.
When a noob trades with his $1000 account on OANDA he probably doesn't mind paying 3-4 cents in spread for each trade, but imagine if you got a $100K+ account, each penny adds up with large lots.
If you trade at $100/pip, each half pip in spread costs you $50, and imagine trading that same instrument a couple times a day, everyday for a month. It's a lot of money.
Nobody should be scalping gold or silver on OANDA with a large account. It just doesn't make sense.
However if your swinging or position trading silver then thats fine.
And it didn't jump from $1500 to $20K overnight, CME issued many increments in margin hikes. The last rate hike was around $50 and everybody who was overleveraged got burnt, hence causing that massive sell-off.
Makes sense if you are a commodities trader. I am a currency trader and
I just happen to hear Kramer on CNBC say something about silver being
a scalpers dream. My broker happened to have it available so I have been
"pumping" it for what I can, about 160 trades in May. I'll still trade
currencies long and short term positions, so I'll keep my broker.