this has probably been discussed before but i trade fx cash through gft. I have been paper trading the russell and s&p and wanted to start trading so i figured i would trade the fx since it is suppose to be less expensive . What are the disadvantages to future. From what i read slippage is a big thing.? Can you control the slippage with limit and stop orders instad of market orders? Any comment would be appreciated. Also is the jpy and gbp very liquid in the daytime trading hours?
I would recommend not worrying so much about the cost of your transaction in trading FX. Worry more about proper position in the trade and be very careful if you try to take very short term postions in this market. I know this doesn't answer your question, but don't put the cart before the horse. Take care and good luck to you. DRT
Where did you read that? Compared to the 2-3 pip "built in" spread on fx cash, futures slippage is minimal. You will almost always have 1 tick spread on euro and jpy, unless you are swinging 50 contracts at a clip.
I agree completely. I only trade futures. There are several hundred thousand contracts traded daily on the CME. Sometimes in the twilight zone there is a spread but rarely and it only cost me $2.40 a side in a regulated environment. Don't worry about the slippage. That's like Walmart worrying about the price of paper clips used by their managers.
What is the liquidity like over figures and when it is volatile? For example the second an econ number is released is it possible to buy/sell a couple of hundred contracts?
It's pretty poor. For starters the spread on eur widens a few extra pips to maybe 4/5 and you won't getg more than 50 contracts either side of the quote.
better than any fx bucket shop. think about it: volume on globex ec v any bucket shop INCLUDING investment bank fx ecn liquidity. i guarantee cme liquidity will almost ALWAYS be more than ANY SINGLE destination for euro/usd otc liquidity (not that retail accounts are trading on real liquidity anyway) retail fx = clueless wanker who gunna get burned. cme futures = wise dude. (assuming you are not profiting from making a market with you liquidity/in house order book) FLAMERS: please read post carefully - very carefully for the emotionally inclined. research what i am saying here WITH FIGURES before dissing the TRUTH. CAUTION:::: this may involve some real work in figuring out how fx market really works rather than believing the gob shite fx bucket shops feed you. PS - i know im gunna get stamped on for saying this. bring it on. 2nd thoughts - dont bother. im not going to validate what i am saying with proof. do your work and you will see what i say is true. i had to and i aint gunna give short cuts to some lazy part timer.
PPS - lon eagle - i appreciate you are not a dumb ass. the above refers to general public. in general, size tends to fall on the big numbers. about 50-60 lots a side is typical from memory - but i dont do business right after the numbers - i wait for it to settle a bit before taking a position.
Anybody working the EC or JY on Globex during nightsessions? WOndering if there is adequate liquidity for 1-5 lot trading. Some days I have to trade after 5:00 eastern so I am weighing Globex vs IB FX for pm trading. Thanks