12.3 Spreads and Slippage – QUIZ

1. Are spreads more important or less important to scalpers than longer-term traders? *

Yes,more important

No,less important

No difference

Depends upon the strategy being used

2. Which is the best time to trade eur/usd if you are a scalper? *

4pm Eastern Time

2am UK time

8 am UK time

7 pm Eastern Time

3. Which forex pair will probably have the tightest spread? *

EUR/USD

GBP/CAD

AUD/SGD

EUR/GBP

4. When does a variable-spread broker typically increase spread? *

Shortly before amajor news announcement

At the beginning of the London Open

Brokers increase spreads for major pairs containing the US Dollar

On Tuesday mornings because it’s a boring day of the week

5. Does slippage matter to scalpers? *

No,because Scalpers enter and exit trades very quickly

No,because Scalpers have fixed profit-targets

Yes,because you could get worst fills than anticipated reducing your profitability

No,because slippage only happens if you are wearing shoes without good grip

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