They are not offering the IQD...That was a discussion over that... I think Oanda hedges some of their stuff with futures...
I was responding to the statement "I wouldn't expect Oanda to ever offer any currency pair which they can't instantly hedge." doesn't make sense to me if oanda operates as I would expect of them. hence my question about them hedging. Does anyone know that they actually do this or why they do this?
Oanda claims not to have a "dealing desk" operation and the pairs that they offer have liquidity...or very high spreads... This way they can lay them off in the Futures market...except the exotics... (does UBS offer exotics?) but when they get those big spreads...they make it...they have agreements with their banks to guarantee the liquidity and provide the credit....I believe...they reserve 20% for the NFA trust fund (compliance reserves) I believe...but now I am venturing into things I do not know and understand...only bits & pieces and guesses on my part. I would just like to have one primary bank behind me as an independent trader...they have several I believe as a market maker...The Oanda founders have a vision...those academic's will make a lot of money when they get into place everything...You know last year they brought in some mysterious venture capital money shortly before offering gold & silver...they are still up to something. If they are trading against you..they are not as blatant and greedy as some...is all I can say...of course with their unit size trade size they are saving up the thousands of transactions to hedge with lot sizes SO THEY MUST HAVE A DEALING DESK, WHETHER IT BE AUTOMATED OR HUMAN INTERVENTION!