Hi My question goes to the Oanda customers traders sclapers, i d like to know whats the maximum size is possible to trade without problems of speed . I mean sometimes if you trade big size i could be a slower ticket than a smaller size. thank you
Use IB FOREX or CME currency contracts for fast scalping. Oanda is slow executing at times, especially around news releases.
Oanda is a dealing desk / market maker model. Why would you want to execute large size through them? It makes no sense.
For example i want to trade my maximum tickets by 5 millions on majors pairs , but my trading style is scalping . So i formualte again my question , what will the best way to trade this amount in sclaping with a small spread as Oanda or a few fees ? thank you
Here is your answer -> USE INTERACTIVE BROKERS. www.interactivebrokers.com You can not trade most of the exotic pairs, but it's extremely fast and you get ECN market bid/ask spreads! You can trade $10, $20, $50 million sizes without any problems, depending on how liquid the pair is!
It depends when you scalp too. If you are trying to scalp the economic numbers and releases (that is, right when the numbers come out or briefly afterwards), you will probably experience delays or rejections wherever you go (especially at Oanda or another dealing desk broker). You can try using an aggregate liquidity portal like the CAX from vCap futures, but you have to be an ECP (Eligible Contract Participant) according to the CFTC regulations. We are currently setting up a few of our traders there because the institution that funds our group is an ECP.
You cannot scalp quickly using $50M; no matter where you go. Even if you try scalping with $10M, you might still experience problems with fills, especially during volatile markets. All scalping systems can handle limited assets because of the issue with liquidity. That's why hedge funds and trading institutions who want to run scalping systems create their own aggregate portals. This won't work with someone like IB despite what they claim.
Their maximum trade size is 10 Mio per entry. Your size has no effect on the execution speed, from everything I've seen. The reason is that their 100% automated algorithm will have no trouble hedging your trade with their liquidity providers, generally in a fraction of a second. But if you believe that Oanda will allow you to either scalp or news trade 5M or even 500K size for very long, you are dreaming and you haven't done your homework... read their forum. Oanda may be good for many reasons, but scalping isn't one of them. What you could do, however, is to combine Oanda with one or more ECNs and split your entries and exits among different platforms. It's more difficult logistically, but the benefit is that your trading style from any one dealer's perspective will no longer look like scalping or news trading.
Fx futures on the CME has plenty of liquidity for the majors. Good luck getting an execution during news releases in the SPOT market, CME is regulated and you will always get a print if your order is on the book.