Have been trading some news recently and am having rediculous fills with CMC . I know they will always be slippage but are there any brokers out there that have half decent fills . Maybe there spreads are a bit more but dont constantly requote. Is there anyone left a little honest or are they all crooks?
The market makers love news releases, there is no quicker way to separate a trader from his trading capital. Assuming some degree of honesty, if the market suddenly moves up (after a unexpected number), how many sellers do you think there will be? If no one is prepared to short a rising market, you can't go long. When everyone is on the same side of the market, there is no market. The short sellers usually wait until the upside has peaked then become counterparty to your long. This is where your buy order gets filled - at the top. It is very painful. FXCM changed my account last last November. They told me how great it was to remove the trading desk and deal straight with the interbank system. December 2006 NFP day was interesting, I had my sell order filled at the day's low. Worse still my stop was miles away because it was based on my getting filled at a certain, higher level. I could not close out the position because the market kept moving. Fortunately my MM strategy limited the losses. News is tradeable but I avoid Non-Farm Payrolls. Is it significant that you post the Monday after NFP? Regards Morty
Trading NFP is going to get you killed whether you trade MM, or ECN, or even on the EBS system. If the liquidity is not there, you are not going to get filled. I have found I do better trading the news after the initial bounce, which is usually about 15 minutes from NFP news announcement.
what about these smaller brokers advertising no requotes. ie http://www.ac-markets.com/ Whats the catch there?
They advertise no requotes and WYSIWYG, but, they will requote you. Just about every MM will requote you - they have to offset the position you are trying to create, and by requoting, their trading desk (the other side of your trade) has a chance to setup the position. Most positions with size will not get filled at market price w/o a requote.