I have traded Forex and hate the fact that unless I place a market order, my order is sitting at the mercy of some dealer to be executed! But still i have always heard its better to trade OTC Forex then through the exchange because of the liquidity. What is the typical spread for major pairs when trading through CME exchange?
Obviously, if you are trading news and/or fast markets, you are always going to have some problems getting filled. And even market orders will not fill at exact prices However, I have not had any problems with limit orders getting filed during normal market operations, and you should not have this problem unless you are doing over 500 contracts at a time. Please also note that there is usually at least a 3 pip spread between the bid and ask, so it also may seem to take longer since you need it to move 3 pips to fill at the price you choose. I have never been put on manual, but my understanding that takes place only for those trying to scalp a few pips since you might have a faster data feed than the broker and they are not going to let you win just by clicking the mouse faster than everyone else.
With Currency futures, your money is segregated. With forex, you take your life in your hands. Refco is an excellent example. The futures traders were in the best shape of all divisions
OK, since you are the expert: Why the cost of carry (difference between cash and futures) shrank to less than 2 points for the Sept ES instead of the usual 12-14 points? Is it the negative expectation or something else?
The ES can trade at a premium, discount or at parity with the cash S&P Index. Earlier today, for example, the ES was trading at a small discount to cash. Right now (2:10 Central Time) the ES is trading at a small premium of about .25. Cost of carry, which is more pronounced in physical deliverable commodities due to transportation and storage costs, is less of a concern in markets that are settled in cash like the ES. The premium or discount to cash in the ES is more a function of aggressive buyers or, in todays case, aggressive sellers in the ES. I'm sure we'd all like to hear from others with an opinion on the subject. Thanks,
Doug, I am on a free trial for inside edge and have a couple of questions. How does one learn the charting software - specifically the symbols and purpose of each chart? Do you have a course/seminar/webinar that provides an overview? Charlie doesn't spend much time discussing the charts. I'm not clear on the purpose of the room. My assumption is its educational? There's a lot of dead time without interaction. Maybe I'm missing something - other webinars/supplemental material to learn the software?? The purpose of the trial is convert me to a user. Getting access to the room is great, but at this point not helpful in evaluating your service. Appreciate any insight you could provide. Thanks