What kind of executions does IB give when the market blows through a level for any number of reasons? Even if it gaps 30-40 pips or so in reality I would expect a 10 pip fill at worst. What is the norm for IB under these circumstances?
Kicking, My 20 pip spread that I discussed was just a hypothetical amount to show what could happen with having stops triggered the way you wanted. It was meant in anyway to be an indication of IB spreads. Let me know the next time you see a signifcant movement and I can post an IDEAL-Pro chart - these charts can be plotted to show the bid and offer price, so you can see how the spread may vary. FYI....recently I've even observed the occassional 0 pip spread on some of our currency crosses (our market-making banks cannot trade with each other) - although rare, it seems to be most common on GBP/EUR in the European morning...can't beat that!
I'm pretty sure about Death. I could be wrong though. You say Oanda offers a great deal of transparency. Yet nobody knows how much they hedge over interbank and how much they take the opposite of. Sure, there is no need to hedge evert $1. But what if they take the other side of up to $1,000,000 per trader? i was questioning TradingWise comments about Oanda hedging everything. If you don't even know what your market maker do with 1 unit trades, would you want to put on a 1,000,000 units trade?
Giving out specific details about business operations is probably considered competition sensitive information and thus not discussed freely. Although these details are not discussed, Oanda representatives have multiple times stated they hedge net exposure over a certain threshold. You should decide for yourself if you trust claims made by Oanda staff. Now lets say their statements are true. In that case, Oanda can never take the other side of up to $100,000 per trader, as Oanda looks at net exposure for all clients. A numeric example: Shorts total $10,000,000 for all clients. Longs total $11,523,000 for all clients. Net exposure is $1,523,000 in longs. Oanda will hedge $1,500,000 at the interbank market and thus a $23,000 stake remains (can not be hedged due to minimum interbank size). In that case it's not likely they will drive the local market the other way only to make a few dollars from the $23,000 stake.
So what you're saying here is that nobody knows if Oanda hedges our trade on the interbank or take the opposite side of them. If they hedge our trade, no one knows how much they hedge it for. However, we should believe that they do hedge just because they say so? :eek:
Hey Rem, how are you doing? So what some say is stay away from "Spot Forex" and trade Futures? Is there an honest way to trade the secondary market from the labyrinth of dealers/marketmakers...or is it to just skip "Spot Forex" altogether? IB and Oanda seem to be the closest to honest IMHO...but what do I base that on? Well...I am able to take out a small profit slowly, but surely... Michael B. P.S. I once drove over the border from California to Tijuana and opened an account at Bancomer to collect higher interest. I find the "Spot Forex" market easier to access online with free charts. Face it, to trade anything Retail requires the trader to be able to compete with the wholesale guys....you can't do it IMHO unless you play longer time frames. I find "Retail Spot Forex" a great interest earning vehicle and trade it as such....