Newbie Forex Q's

Discussion in 'Forex' started by Kastro_316, Apr 28, 2004.

  1. WarEagle

    WarEagle Moderator

    Yeah, stops are another thing that would be a huge risk. They guarantee they will fill you at the stop price, but since they set the current price, if enough stops are at a certain level and the market gets anywhere near that level, they can take their own price far enough to hit them, giving them easy arb profits by covering at the actual market price. Its like putting the wolf in charge of the henhouse to leave resting stops with the person taking the other side of your trades.
    #11     Apr 29, 2004
  2. toby400


    trade the euro/dollar etc via futures ( Globex)

    Bear in mind that with Futures only the majors have any real liquidity. Spreads on IB are about one pip on the euro and cable.
    #12     Apr 29, 2004
  3. taboni


    The way around all the shenanigans is to deal with a broker who does not run a trading desk and deals on a stp (straight through process) basis. You deal with their liquidity provider (bank) and you pay a commission to do so. As an ex interbank dealer I prefer it this way. Its clean, and I know if my stop was done, the market was there. They dont complain when I scalp and cost them money because they don't take the other side of the trade.
    Just my $.02
    #13     Apr 29, 2004
  4. AC3


    True ..... the best way 2 go is just have it right up front.. b charged the 1 pip in/out and leave it at that ... fair fill on the stop and u got a winning plan .......Nobody shows up 4 work anywhere for no $
    #14     Apr 29, 2004
  5. taboni


    Yup...except a 1 pip vig is too much to pay.
    #15     Apr 29, 2004
  6. AC3


    Just remember u get what U pay for and that is not being condescending or being a smart ass it just is......also depends on the type of trading u doing ...... If your looking 2 scalp the mrkt then dont believe the hype in FX u will get creamed.........
    #16     Apr 29, 2004

    Posted by rezo s: 12-16-03 09:05 AM.

    " Re: some fx dealers:
    Hi Everyone here is my latest story on this issue:

    Well, Refco,Fxcm and some others offer guaranteed filling of stop and limit orders no matter what, in case the trade size is upto 10 million (refco, fxcm). I have funds under management both in Refco and in Commerce Bank (CB). CB doesnt guarantee fillings.
    Here is the story:

    I had 2 positions open previous week:

    Long euro @1.2155
    Short USDCHF@1.2765

    By friday we were up about 10% on those positions, I moved stops to protect around 3-4%:

    euro to 1.2200
    swissy to 1.2720

    As we know market opened with a huge gap of over 150 pips on euro.

    So here's what happened: Refco clients enjoyed the benefit of "no slippage" guarantee and actually got those profits, shifting this month to 14% profits, and CB clients booked LOSS! yes, CB doesnt promise filling, and orders were filled on the first market price (which were the worst prices - because from the opening second, USD kept being sold), and CB accounts got actually a loss of around 1,8%...

    How about that?! well, on the real interbank market there are no guaranteed fillings, and if you have an order, you will be executed on the first market price. But on the other hand, things like this one dont happen much (150 pps gap!!).
    Guaranteed fills is a benefit which only retail forex traders can enjoy.

    And couple words on ECNs like goesfx: I cannot give much feedback on this - only what I heared and read from others, and based on that - this is by far not a new thing, but no one of such ideas was successful till now without broker still interviening and trading on the other side. Seems that otherewise in the end, lack of liquidity is killing those ideas (unless broker steps in).


    Rezo "
    #17     Apr 29, 2004
  8. I don't know what you guys are bitchin about but OANDA is not anything (negative) of what you describe here.

    1. You can trade any way you want (read scalp to your heart's content).

    2. Instant fills/executions - any amount (on EUR/USD) - period.

    3. Minimal slippage.

    4. No human intervention.

    5. They WANT you to make money (call them up and ask them).

    What else matters?

    #18     Apr 30, 2004
  9. toby400



    Registered: Apr 2004
    Posts: 35

    04-30-04 10:08 AM
    ha ha ha
    big freaking deal.....thats what i would expect from any market maker.....but fxcm wants a f**king cookie for it!!???
    although i must admit, i thatsimpressive for fxcm, as ive been on their desk and i know them fisthand to be avery crooked bunch....

    Page 2 of 2: 1 2
    Senior Member

    Registered: Aug 2003
    Posts: 102

    04-30-04 10:42 AM

    Goldenchild: please post your full name and start/end dates when you were on the fxcm desk, I'd like to confirm that information with fxcm.

    When did you work for fxcm Goldenchild ?
    #19     Apr 30, 2004