ECN Synthetics?

Discussion in 'Forex' started by achilles28, Jun 20, 2007.

  1. Which ECN's offer synthetic pairs?

    Reason I ask - MBTrading offers GBPJPY cross @ ~4 pip spread + commish.

    Simultaneous spread at MB on GBPUSD is 0 and USDJPY at 1 pip.
     
  2. IB's IdealPRO is 4 wide most of the time, but you lose 50:1 as they quote the natural but it's priced synthetically.
     
  3. Steve_IB

    Steve_IB Interactive Brokers

    We've recently added a couple of more liquidity providers, so I think you'll find that GBP.JPY is now usually 1-3 on IdealPRO. The margin will depend on what your base currency is.
     
  4. cstfx

    cstfx

    Who are your liquidity providers? And how many at this point?
     
  5. You are just a wealth-spring of information, my man.

    I hope you stick around :)
     
  6. Steve_IB

    Steve_IB Interactive Brokers

    Eight I believe, with two more coming on board shortly. Of these ten, 8 are in the 2007 ranking of top FX banks, list here: (http://en.wikipedia.org/wiki/Foreign_exchange_market)
     
  7. Will try. ;)
     
  8. Can IB increase the fx trader window to 20 cells? 16 is not enough.
     
  9. Let me rephrase the question:

    Do ECN's offer synthetic crosses on the majors?

    For instance - lets say the GBPJPY outright cross is illiquid but the GBPUSD and USDJPY is highly liquid.

    Which ECN's allow a synthetic cross from the GBPUSD and USDJPY to accommodate?
     
  10. Essentially all of the real ones do, just do the synthetic
    yourself, simultaneously taking the prices in the appropriate
    amounts. This will leave you in exactly the same position as
    if you had traded the natural. On independent ECN's (EBS,
    CurrenEx, Hotspot, Lava, etc) your buying poser is affected
    the same either way. In captive in-house ECN's (IDealPro,
    MB/EFX, Dukascopy, FXLQ, etc.) margin treatment of open
    positions may be dependent on the route you took to those
    positions.

    You can, on most ECNS, denominate your trade in terms
    instead of base, e.g. short 1mio USD/GBP and long 1mio
    USD/JPY, which makes figuring out how much to trade a
    little easier.
     
    #10     Aug 5, 2007