Why would anyone want to trade with you , you charge 10% on
winning trades . Must be another Maddoff scam.
winning trades . Must be another Maddoff scam.
Discount Stock Broker
- Thread starter shortbleu
- Start date
Hi LeeD,
You're absolutely right, I would need a substantial deposit amount in the Forex account in case the GBP/USD rate moves against me dramaticly. Since I am long GBP short USD in the forex account, any decrease in the GBP/USD rate will trigger losses in the forex account.
If I buy GBP 4000 and sell USD to create the hedge when the GBP/USD rate is 1.6 and then months later, the GBP/USD rate has moved dramatically down to 1.3, my forex account would have lost USD 1,200 or GBP 923 equivalent.
Also to hold the position of 4000GBP/USD, and considering a leverage of 200:1, I would need a margin of GBP 20 on top of the GBP 923.
Therefore, if I expect the worst case scenario of the GBP/USD going down to 1.3, i would need to open the forex account with at least GBP 923 + GBP 20 = GBP 943.
GBP 943 is a lot compared to the size of my positions in stock of GBP 4000, it's 23.6% !!! I feel very bad about it as these GBP 943 or 23.6% are not generating income and are just used for the hedge. Even worst, these GBP 943 might shrink if the rollover cost is against me.
With regards to the rollover calculations, you're correct again. I've looked into the details of the calculations in the FXCM tutorial video. In 2007, central bank rates were 4.75% for USD and 0.5% for JPY. So, one would expect to earn the differential 4.25% if they're long USD/JPY and pay 4.25 if they're short USD/GBP.
However long customers earned 4.01% only and short customers paid 4.56%, therefore FXCM indeed makes money from the rollover and all the customers had to pay for it.
This means FXCM charges customers about 0.24% or 0.31% of their full position invested position in the forex.
At the moment, the central bank rates are 0.5% for GBP and 0.25% for USD, so my hedging trade would generate 0.25 in income.
If FXCM charges about 0.3%, I would end up paying 0.3% - 0.25% = 0.05%
You said Interactive Brokers charges 1.6%, this seems a lot compared to the 0.05% calculated above. This is certainly not the sort of percentage I would accept to pay. IB seem a lot more expensive than FXCM or did I miss something?
To summarise, it seems that creating a hedge would resulte in a cost of opportunity as I need to park a lot of money in a forex account (23.6% or GBP 943 using the scenario as above) and also a potential roll over cost that will add up. This seems really really bad, what are your thoughts?
Thanks
You're absolutely right, I would need a substantial deposit amount in the Forex account in case the GBP/USD rate moves against me dramaticly. Since I am long GBP short USD in the forex account, any decrease in the GBP/USD rate will trigger losses in the forex account.
If I buy GBP 4000 and sell USD to create the hedge when the GBP/USD rate is 1.6 and then months later, the GBP/USD rate has moved dramatically down to 1.3, my forex account would have lost USD 1,200 or GBP 923 equivalent.
Also to hold the position of 4000GBP/USD, and considering a leverage of 200:1, I would need a margin of GBP 20 on top of the GBP 923.
Therefore, if I expect the worst case scenario of the GBP/USD going down to 1.3, i would need to open the forex account with at least GBP 923 + GBP 20 = GBP 943.
GBP 943 is a lot compared to the size of my positions in stock of GBP 4000, it's 23.6% !!! I feel very bad about it as these GBP 943 or 23.6% are not generating income and are just used for the hedge. Even worst, these GBP 943 might shrink if the rollover cost is against me.
With regards to the rollover calculations, you're correct again. I've looked into the details of the calculations in the FXCM tutorial video. In 2007, central bank rates were 4.75% for USD and 0.5% for JPY. So, one would expect to earn the differential 4.25% if they're long USD/JPY and pay 4.25 if they're short USD/GBP.
However long customers earned 4.01% only and short customers paid 4.56%, therefore FXCM indeed makes money from the rollover and all the customers had to pay for it.
This means FXCM charges customers about 0.24% or 0.31% of their full position invested position in the forex.
At the moment, the central bank rates are 0.5% for GBP and 0.25% for USD, so my hedging trade would generate 0.25 in income.
If FXCM charges about 0.3%, I would end up paying 0.3% - 0.25% = 0.05%
You said Interactive Brokers charges 1.6%, this seems a lot compared to the 0.05% calculated above. This is certainly not the sort of percentage I would accept to pay. IB seem a lot more expensive than FXCM or did I miss something?
To summarise, it seems that creating a hedge would resulte in a cost of opportunity as I need to park a lot of money in a forex account (23.6% or GBP 943 using the scenario as above) and also a potential roll over cost that will add up. This seems really really bad, what are your thoughts?
Thanks
Moron Madoff story isn't about making anything, it's about pocketing investors money. And you and your shitass fund, or whatever you call it could be another scam, you aren't registered with finra or sipc ,why would anyone deposit money with you.
you are one bitter motherfucker ain't you , you suck and as well does your mom, and your shitass company, since you're so desperate trying to solicit customers on this board, dickhead!!!!
Can the admin team please remove all the posts from Riseluxxx and Riseluxer from this thread as well as the others posts other forumers have addressed to him?
This thread should stay focused on the topic I started and has a goal to provide useful information.
Thanks for your understanding.
Shortbleu
This thread should stay focused on the topic I started and has a goal to provide useful information.
Thanks for your understanding.
Shortbleu
Short I recommended you just2trade, IB, there is lightspeed. As long as you pull winners , you don't have to worry about nothing else.
Hi LeeD and Tickmagnet and all,
I realise it is quite costly to install a currency hedge for a UK resident having a deposit in USD , Iâve looked into Interactive Brokers (IB) and I would be interested to open a stock account with them as long as you can confirm the following :
1) As a UK resident can I open a stock account in GBP and the deposit will remain in GBP even if I trade in foreign currencies stock? i.e, there is no currency risk on the deposit, there is currency risk on the P&L denominated in foreign currency?
2) I need GBP 6,250 minimum (equivalent of USD 10,000) to open the account?
3) What happen if the account falls below GBP 6,250 due to a loss or withdrawal?
4) The only cost to run the account will be commission to open/close positions and monthly fee of USD 10 or are there any other costs? (NB: I only need to see a live price on the ask price and the bid price and their related volumes to trade. I donât need any depth level 2 or graphs, so costs should be kept to a minimum).
5) Example: The account is opened with GBP 6,250, the yearly cost to buy 1100 european stocks(from Belgium, france or Italy) on 1 April 2010 at EUR 5 each and selling them back at the same price of EUR 5 on 31 March 2011 would be as follow: 1100*eur 5 *0.1% to buy the stocks + 1100*eur 5 *0.1% to sell the stocks + 12* USD 10? Are there any other costs?
Will the account show the following:
Deposit balance GBP +6,250
Commission : EUR -11 (1100*eur 5 *0.1%+1100*eur 5 *0.1%)
Monthly fees: USD -120
Profit/loss = EUR zero
Or do they convert the commission and monthly fees in GBP, or just the EUR commission in USD and the monthly fees stay in USD?
Many thanks
I realise it is quite costly to install a currency hedge for a UK resident having a deposit in USD , Iâve looked into Interactive Brokers (IB) and I would be interested to open a stock account with them as long as you can confirm the following :
1) As a UK resident can I open a stock account in GBP and the deposit will remain in GBP even if I trade in foreign currencies stock? i.e, there is no currency risk on the deposit, there is currency risk on the P&L denominated in foreign currency?
2) I need GBP 6,250 minimum (equivalent of USD 10,000) to open the account?
3) What happen if the account falls below GBP 6,250 due to a loss or withdrawal?
4) The only cost to run the account will be commission to open/close positions and monthly fee of USD 10 or are there any other costs? (NB: I only need to see a live price on the ask price and the bid price and their related volumes to trade. I donât need any depth level 2 or graphs, so costs should be kept to a minimum).
5) Example: The account is opened with GBP 6,250, the yearly cost to buy 1100 european stocks(from Belgium, france or Italy) on 1 April 2010 at EUR 5 each and selling them back at the same price of EUR 5 on 31 March 2011 would be as follow: 1100*eur 5 *0.1% to buy the stocks + 1100*eur 5 *0.1% to sell the stocks + 12* USD 10? Are there any other costs?
Will the account show the following:
Deposit balance GBP +6,250
Commission : EUR -11 (1100*eur 5 *0.1%+1100*eur 5 *0.1%)
Monthly fees: USD -120
Profit/loss = EUR zero
Or do they convert the commission and monthly fees in GBP, or just the EUR commission in USD and the monthly fees stay in USD?
Many thanks
Shortblue, since the other idiots before tryed to affect me...now I am feeling obligated to reply here on topic 
.
So, why not try Barclays? They are Englih bank and one of their requirements is to be an english resident - that said, Yes, you can open account with 6000 GBP with them. Finally, I have some experience with them - can't complain. But...beware! Reading their terms and conditions they mention that you should be aware of liquidity risk - aka "risk that you cannot close your position due to lack of buyers/sellers" etc. Finally, you should be VERY aware of this thing. On NYSE and NASDAQ, SEC obligates these exchanges for every buyer to exist a seller and for every seller to exist a buyer - this is NOT the case for instance on the ASX (australian stock exchange). How about London stock exchange? Are there market makers/specialists?
You haven't mentioned that so far...so I feel obliged to mention it.
Other than Barclays, you can open account at Saxobank - BUT...I don't recommend it - their platform is terrible, my advice is to try with Barclays but read carefully their terms and conditions and ask them any questions you might have...of course.
Also, it is NOT possible to buy a stock in foreign currency and eliminate foreign exchange exposure prior to your value date. The currency will always move somehow until the value date or until your order is finally closed/settled. Yes you can lose money this way for instance:
100-(0.57/0.623752495)*100
Which equals about 8% possible loss/gain during your currency risk settles, in the case of a 500 pips move.
Finally, can't you simply convert the GBP to USD and trade mostly on NASDAQ, NYSE?
Of course our website offers opening of accounts in multiple currencies, but since "idiots" here like this stupid negger from Queens...well anyway.
write if you have more questions...
I'd personally go with Barclays.
. So, why not try Barclays? They are Englih bank and one of their requirements is to be an english resident - that said, Yes, you can open account with 6000 GBP with them. Finally, I have some experience with them - can't complain. But...beware! Reading their terms and conditions they mention that you should be aware of liquidity risk - aka "risk that you cannot close your position due to lack of buyers/sellers" etc. Finally, you should be VERY aware of this thing. On NYSE and NASDAQ, SEC obligates these exchanges for every buyer to exist a seller and for every seller to exist a buyer - this is NOT the case for instance on the ASX (australian stock exchange). How about London stock exchange? Are there market makers/specialists?
You haven't mentioned that so far...so I feel obliged to mention it
. Other than Barclays, you can open account at Saxobank - BUT...I don't recommend it - their platform is terrible, my advice is to try with Barclays but read carefully their terms and conditions and ask them any questions you might have...of course.
Also, it is NOT possible to buy a stock in foreign currency and eliminate foreign exchange exposure prior to your value date. The currency will always move somehow until the value date or until your order is finally closed/settled. Yes you can lose money this way for instance:
100-(0.57/0.623752495)*100
Which equals about 8% possible loss/gain during your currency risk settles, in the case of a 500 pips move.
Finally, can't you simply convert the GBP to USD and trade mostly on NASDAQ, NYSE?
Of course our website offers opening of accounts in multiple currencies, but since "idiots" here like this stupid negger from Queens...well anyway.
write if you have more questions...
I'd personally go with Barclays.