fx is best for day-to-days/weeks trading regardless of o/n interest since the margin
doesn't increase for o/n position trading, however daytrading margin is considerably
higher than the 6E - $500 to trade $125,000 which with Canada's new 3% margin
requirements means $3750 to trade the same fx amount (not sure it's related but
fxcm just discontinued offering brokerage to Canadians) 6E o/n margin is $3500
if volume's thin on the 6E it's even thinner at brokerages since each fx broker is in a
sense an individual exchange, each an equivalent of the cme globex
6E commission is generally around $4.50 and can be lower, while fx at .8 is $10 for
12.5 minilots, at 2.5 is $31.50 and during news releases 15 or more - $187.5
which means one can be profitable trading 6E with only a single pip/tick gain
'slippage' is a real euphemism; if a trader wants a specific price they should use a
Limit order, market orders are executed at the next current price which might be
the previous price or several pips/ticks away, however fx trades are executed at the
'discretion' of the fx broker or bank/s several pips/ticks away from the price that is
displayed on the quote screen/chart - from fxcm's trading station user guide:
" 2 scenarios can occur when a market order is placed:
1. Market Range: If an order cannot be executed within the price range specified
by the client, the order will not be executed. The default setting for "Market Range"
is zero. By keeping this setting, you are stating that if the price you click on is not
available, you don't want to get filled; you will only get filled at the price range you
click on. Advantage = Price Certainty [in other words if you don't give-up some extra
pips by increasing the 'Market Range' amount you won't get filled]
2. âAt Bestâ: If you select this option, your entire order will be filled at the best
available rate. This could be at the rate you click on, or a substantial number of
pips away. Essentially, your complete order will be quickly filled, but there is no
certainty of the price. The rate is determined by prices provided to FXCM by the
multiple banks and financial institutions. Advantage = Execution Certainty"
["substantial number of pips away" "no certainty of the price" but you will certainly
be executed
]
see fast market conditions represented by a 10 tick chart, how large the h-l range
can be - how fast the price can change: http://www.elitetrader.com/vb/showthread.php?s=&threadid=172655
doesn't increase for o/n position trading, however daytrading margin is considerably
higher than the 6E - $500 to trade $125,000 which with Canada's new 3% margin
requirements means $3750 to trade the same fx amount (not sure it's related but
fxcm just discontinued offering brokerage to Canadians) 6E o/n margin is $3500
if volume's thin on the 6E it's even thinner at brokerages since each fx broker is in a
sense an individual exchange, each an equivalent of the cme globex
6E commission is generally around $4.50 and can be lower, while fx at .8 is $10 for
12.5 minilots, at 2.5 is $31.50 and during news releases 15 or more - $187.5
which means one can be profitable trading 6E with only a single pip/tick gain
'slippage' is a real euphemism; if a trader wants a specific price they should use a
Limit order, market orders are executed at the next current price which might be
the previous price or several pips/ticks away, however fx trades are executed at the
'discretion' of the fx broker or bank/s several pips/ticks away from the price that is
displayed on the quote screen/chart - from fxcm's trading station user guide:
" 2 scenarios can occur when a market order is placed:
1. Market Range: If an order cannot be executed within the price range specified
by the client, the order will not be executed. The default setting for "Market Range"
is zero. By keeping this setting, you are stating that if the price you click on is not
available, you don't want to get filled; you will only get filled at the price range you
click on. Advantage = Price Certainty [in other words if you don't give-up some extra
pips by increasing the 'Market Range' amount you won't get filled]
2. âAt Bestâ: If you select this option, your entire order will be filled at the best
available rate. This could be at the rate you click on, or a substantial number of
pips away. Essentially, your complete order will be quickly filled, but there is no
certainty of the price. The rate is determined by prices provided to FXCM by the
multiple banks and financial institutions. Advantage = Execution Certainty"
["substantial number of pips away" "no certainty of the price" but you will certainly
be executed
]see fast market conditions represented by a 10 tick chart, how large the h-l range
can be - how fast the price can change: http://www.elitetrader.com/vb/showthread.php?s=&threadid=172655
