Execution on most platforms is measured in milliseconds (hopefully ) but he is talking about the whole process. It seems as if he is taking his buy/sell signal off of a chart point on esignal. The time it takes for this to reach him and then for his api to execute the trade is slow. There are alot of possible reasons for this, the least of which is probably the speed execution by the end platform (which should be in the range of 100-200 milliseconds). I know from dealing with a few api traders on our platform that there are alot of places for delay in this process. Peter Neczesny Vice President Hotspot FXR email pneczesny@hotspotfx.com Hotspot FXR is a CFTC Registered Futures Commission Merchant and a member of the National Futures Association, NFA # 0351580. On the NFA website, URL www.nfa.futures.org, a background affiliation status information center (BASIC) search area is provided.
Thanks very much for all the suggestions that have been given so far. I will study trading at Globex. My main question is: Would any Forex broker or Globex broker let me run an algorithm at their servers ? Would they let me have a computer connected directly at their servers ? []'s !
I'm sorry, do they make you take series 3 exam at IB?? I understand that you are trying to push your side of the business but arguing that futures market is more liquid than spot is just..eh...absurd. Spot has many times the amount of volume, liquidity and instruments to trade. The fact that someone, somewhere had a slow exectution with a retail spot dealer doesnt quite invalidate the point, does it? Futures has its advantages but swiftly executing several mil in CAD on a calm NY afternoon is not one of them.
We offer both FX cash and Globex so there's nothing to push. I have my series 3,24 among other licenses but I'd venture my 20 years experience trading electronically carries me a bit further. I don't see anything in the origninal posters post that states or implies he's pushing around several milllion CAD or other currencies. Maybe I'm missing something but his topic of the thread and main concern in his post is EXECUTION speed - not a deep book of liquidity. I'll stand by my statement that if speed is the primary concern, he'll probably be better off with Globex futures.
Exactly, if speed down to milliseconds is a concern, what good is the latency without and depth of book? They go hand in hand. The point a few of us have here is that CME futures on the floor as well as Globex - yes, faster than the floor (so is rush hour traffic) isn't very liquid. Without the liquidity, your speed ends up being only part of the equation. Cash is king in currencies. Same goes with equities, kind of hard ot combine latency and samller issues when it's an illiquid, barely traded option vs. the underlying issue, sometimes....
sure liquidity must be a concern if you are doing large size but the futures are plenty tight and liquid for most traders. for example right now there are tight markets and plenty of size to trade against (note the volume traded in the attached as of 10:30 AM). so if speed is the primary concern.....
misha7 PeteHS's post explains the issue, execution speed in the context of the whole process, rather well. It seems that liquidity shouldn't be a concern for pedroernesto1, who started this thread.
seriously, you're missing the point. He's a computer scientist, asking if he can place a server on site to pick up latencies. If this is the case, he's most likely setting up strategies via an API, and could do better - maybe 50% of the time he could do better - if someone didn't beat him to the punch, that "person" probably another automated trader. So, to say the the Canadian Dollar CME future is plenty deep and liquid might be true in a low volume world, if he really wants that type of speed - from API to broker to "Destination" and back - CME currency futures are in no way the bastion of speed OR liquidity, and certainly not a combination of both. Your point is well taken that globex is liquid, and your assumptions the original poster isn't high volume is a bit off - if hes coming through an API, and looking for speed, a few of us here said that that's probably not the best place to do FX. You have to understand that most if not all people coming through an API and asking for speed would also need a good depth of book and liquidity. Otherwise, well, if he's writing a program to basically be a market maker - or mean reversion, or trends, it would be necessary under all three strategies - to have more than just a few people in those pits or on the Globex screens. Outside of maybe 4 or 5 major currencies, those pits and screens are thin. What you are arguing is that some broker thinks the currency futures are plenty thick enough for this guy. They may not be, and your brokerage may not be the answer, either. Consider the two or three people telling this guy to look elsewhere - for product and/or service/broker - aren't giving bad advice.