To reverse or not to reverse

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kingrolla
Posts: 5
Joined: Mon Dec 12, 2011 3:41 pm

As a novice here, I'm having trouble understanding the advantage of reversing the book for scalping. It all too often happens, at least to me, that if i spot a downward trend and I click the blue side, (I'm talking the one click screen here) the bet stays there waiting to get matched at say 3.6 but the price has already slipped under my bet to 3.5 and I've missed the opportunity, so it stays there and then gets taken when the price turns and heads back up again, so I'm getting matched when the price is rising instead of falling and I get caught in a loss situation.
It seems to me that if I didn't reverse the book, I'd have got matched instantly, caught my slide before it turned back up and bagged myself a winning trade.

What is the advantage of reversing the book, as peter does in his video so successfully.

thanks a lot guys

Rolla
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superfrank
Posts: 2762
Joined: Fri Aug 14, 2009 8:28 pm

edit: sorry i misread your post.
Last edited by superfrank on Tue Mar 20, 2012 12:04 am, edited 3 times in total.
kingrolla
Posts: 5
Joined: Mon Dec 12, 2011 3:41 pm

Er.... thanks a lot Superfrank... thats an ispired observation :lol:
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Euler
Posts: 26431
Joined: Wed Nov 10, 2010 1:39 pm

If you are doing a direction based trade in a volatile market it often makes sense to take the price available. If you are trying to benefit from short term volatility in a relatively stable market it makes sense to reverse the book.
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