Whats the main difference between FX futures and FX?

Discussion in 'Forex' started by c_323_h, Jul 7, 2005.

  1. milstar



    Which from experienced operator's can compare
    intraday trading of eur/usd futures with depth of the market
    level 2 quote against eur/usd spot by fX pure agent with ECN and possibility to win spread as hotspotfx.com ?

    Which of different tactical skill are possible and which are
    not possible by each market ?

    Author paper game test with real quote gave folloving result
    /for small operator/ .
    Attention -test reflected author dissadvantages
    by tactic ,which generaly not suited to another persons
    and by long term testing can give another result as first
    impression .

    1. eur/usd futures intraday with depth of the market
    -high profit possible . Tactic -win spread
    Important risk - stop order would not filled /last example
    current account anounsement /

    2. eur/usd spot by oanda - 10-30% of profit possible with
    chance lower as for eur/usd future .Tactic - scalping

    3. mgforex - loss expected.

    4. hotspotfx with depth of the market and possibility
    to win spread . Not possible to test ,as quote is delayed
    by demo.

    Author would very pleased for comment from competent person .
    #31     Jul 14, 2005
  2. xip


    For the small trader, THE most important thng is the ability to trade small size while hopefully learning. Spot FX with an honest broker like Oanda is the only choice for those not wishing to be a one day wonder. (Most will be anyway but slower, at least if you trade small size you have a theoretical chance to learn).

    Spreads can be compared directly between Oanda and CME by doing some free registration here http://www.cme.com/trading/dta/real/eqivalents4042.html They are generally tighter at Oanda, especially if comparing the minis and the more exotic ones (that is, if CME even has them). In addition, the CME commissions should be added.

    Those trading larger size and are paranoid can trade Spot FX at IB's Idealpro, works like an ECN. Very tight spreads like Oanda.

    One other advantages with Spot FX is true 24 hour trading and data, not 23. And no distortion of the charts from the roll-over of contracts.
    #32     Jul 14, 2005
  3. Again, those who mention tight spread on Oanada obviously cares 1pips or 2pips.
    However, I have never seen that they care they always have to pay the spread.

    In trading world, those who focuses on small ticks usually takes advantage of limit order, and they seldom use market order.

    FXspot, it's impossible, they are always to force to send market orders.

    If you really wanna calculate the trading cost, just consider the missing opportunity of the limit order of the exchange.
    #33     Jul 14, 2005
  4. xip


    Again, IB's idealpro works like an exchange. You can use limit orders. And the minimum size is much smaller than at CME.
    #34     Jul 14, 2005
  5. Chood


    The bucketeers grind down mini-accounts with as much devotion as regular accounts, don't they? Or do you believe the dealers put gold stars by the names of small customers to give 'em a fair shake? So why tell novices to pay the crooks? To “hopefully learn”? They’ll learn not to risk their money with crooks, a lesson they can get for free from veteran members of this board.
    #35     Jul 14, 2005
  6. xip


    The typical small trader starting to trade the futures on the CME is doomed automatically. The large size will wipe out his account before he has a chance to learn anything. That if anything is a scam on an extremely large scale.

    And you are wrong about regulation. The CTFC has increasingly regulated forex during the last years and has wiped out many of the most extreme offenders.

    But of course you must be careful. For example Oanda has an excellent reputation and I have had no problems with executions. And again, IB's Idealpro works like an exchange.
    #36     Jul 14, 2005
  7. Chood


    I didn't mention regulation, but since you raise it, what exactly do you know about it? The only CFTC regulation any of the spot dealers can hold out is registration as a FUTURES Commission Merchant (FCM), which does not apply to forex dealing. (Dealing is not brokering futures.) And that's in the case only of FCM registration. I know of no offshore shops -- which is the vast majority of them -- that have FCM registration. A few are licensed by the FSA in the United Kingdom, which has a good rulebook (by statute), but admits that it lacks enforcement resources.

    What the CFTC has done is shut down some cons NOT involving the order and price manipulation of the platform-based dealing of the best bucketeers. Candle-painting, spikes to stops, slippage, re-quotes, algorithyms, price and position discrimination, orders dishonored due to "misquotes" -- the bag of tricks of the shops has not been in the crosshairs of the CFTC. The CFTC does not have jurisdiction over the tricks. See its published rules and its published enforcement orders. Not one involves the bucketing we're talking about here.
    #37     Jul 14, 2005
  8. Some guy says Oanda, anothrer guy says IB.
    The disadvantage always chases you.
    Too many uncertain factors and untransparency of the trading against FXshop. Try Oanda, Try IB.... Well there is no ideal shop around. It's simply because they have to make money from the spread they show to their customer. So you've got to pay them. No dream.
    #38     Jul 14, 2005
  9. xip


    Why are you insisting that people should use an offshore forex dealer? Oanda is a registered Futures Commission Merchant with the Commodity Futures Trading Commission and is a member of the National Futures Association. And again, Idealpro works like an exchange.
    #39     Jul 14, 2005
  10. Oanda, no regulaion, right?
    Oanda, no limit order.

    IB, regulated, limit order, but wider spread.

    Each shop has inferior factors.
    #40     Jul 14, 2005