Sounds to easy.

Discussion in 'Forex' started by drasfs, Jul 16, 2006.

  1. Not to mention slappage (indiscriminately bad timing).
    :D
     
    #21     Jul 16, 2006
  2. drasfs

    drasfs

    But how big can gaps be? More than 40 pips?
     
    #22     Jul 16, 2006
  3. nazsmith

    nazsmith


    Just visiting ET and of course I'm reminded of why I didn't like this forum. "... it sounds logically correct . . ." This is one of the last places from which to expect any logical thinking or commentary. (However, there are a few posters who think logically here.)
    I don't understand why people who do not understand logic or simple math terms even trade with real money. What makes this sound "logically" correct? I wouldn't have any qualms with that post if the wording was "this sounds good to me." When people start talking about logic incorrectly, I kinda get emotional.
     
    #23     Jul 26, 2006
  4. sccz97

    sccz97

    If you're trading with a retail broker, depending on their platform you might be able to get away with this strategy in small sizes, assuming you always get filled at your limit price ( there are some brokers that allow this ). You of course have to place your limit straddle fairly tight aroudn the current market price and as close to the announcemnt as possible to aoivd any pre-announcment moves quick often happen on larger figures that might be leaked or perhaps just mkt spoof. THe problem is in the wholsale mkt, if you place your stop limit orders above and below the curent price and the market gaps, you simply won't get filled. If you try using a mkt order, you stand to get filled outside mkt if you're doing significant size and the book is more or less empty.
     
    #24     Jul 27, 2006
  5. You'll get stopped out half the time, as the "buy the rumor sell the news" volatility hits both sides before any real movement takes off. You're better off going to the roulette table.
     
    #25     Jul 27, 2006
  6. sim03

    sim03

    drasfs, you didn't mention yet - and, amazingly, no one asked: how do you decide between long and short entry, 1 minute before the news? Or do you have in mind doing both at the same time in 2 accounts?
     
    #26     Jul 27, 2006