You refer Spot to Retail, when you should be tagging it Cash...futures is Retail too... Retail Spot Forex is a secondary retail cash market...
wrong terminology--sorry bout that--Thanks for putting me in the picture. Illliquid, wouldn't it be better for someone to wait til they had the funds and trade the futures instead?
I know that my my broker is echanging money at the spot market, and that I exchange on the second hand spot echange as I open positions through my broker.
The e-forex market keeps getting better for the investor. The rule seems to be that whatever the institutions have to trade, the public will soon have access to it as well. First, spot forex was exclusively for institutional trades and bank customers. Today, everyone can trade spot forex. Now, come options on spot forex. That¹s right, spot forex options. These will be excellent tools for controlling risk in the e-forex market. an option place can help considerably. The trader can virtually control the risk and the duration of that risk. With OTC options on spot forex, you could buy a call at any strike price and at a time of duration that you want. There are downsides, though. A trader needs to understand that options on spot contracts are different in a major respect from options on futures currency contracts. Buying or selling an option on spot is a negotiated deal with the bank. Yes, they use the Black-Sholes formula to determine premium value, but there is no market price. You can buy the option, but it is possible that when you want to sell it there is no buyer. The lack of price transparency is another risk. If you're trading a forex spot option, the price you paid may be quite distant from its theoretical value, and an informed trader can determine what that price ought to be. Also note whether the option is an American option or European. The European option can be exercised only on a set date.
Well I know a broker where you can trade directly on the spot market. YOu have to pay a monthly fee of 40 dollar though. The spreads are much tighter too.
But you can just forget the UBS or EBS...Banks prefer to deal with each other...(in my lifetime, I do not think they would ever let me in) but maybe Coinzy is in The farthest I can get is in with the ECN's through the institutional side...but I do not scalp, so I don't use em'