FOREX ---A sure thing, YES the holy grail?

A

austin spare

i met a guy last weekend who trades what seems to be a sure thing 4X system. I don't trade forex and have limited understanding of it, normally i would dismiss his comments immediately, but drives a ferrari and lives in a large large home all from forex or so he claims. give this a listen:

the guy trades the payroll numbers, October 7th is the next number release. He has two accounts with 2 seperate Forex dealers. According to him, immediately, as the numbers are released, one of the dealers will jump before the other one pushing the pair 40-100 plus points within 1-5 seconds, now all he does is buy or sell the pair in the lagging dealers account( as it must follow the leader) and collect the profits. He claims this is no lose, easy money and his lifestyle reflects that he walks the talk. What am I Missing??

Thank you.

Austin
 
do a search on ET ...

trying to game FX dealers on news days

maybe once existed ... I do not think it still does

maybe your friend can get lucky and

does have multiple accounts set up at various

fx dealers and somehow gets an occasional multi
pip win ...

I would think that word would get around and they would widen their pips ( spread ) just for him

and in anycase ... I do not think size is possible on big news releases unless one pays alot in slippage or spread
 
Quote from austin spare:

i met a guy last weekend who trades what seems to be a sure thing 4X system. I don't trade forex and have limited understanding of it, normally i would dismiss his comments immediately, but drives a ferrari and lives in a large large home all from forex or so he claims. give this a listen:

the guy trades the payroll numbers, October 7th is the next number release. He has two accounts with 2 seperate Forex dealers. According to him, immediately, as the numbers are released, one of the dealers will jump before the other one pushing the pair 40-100 plus points within 1-5 seconds, now all he does is buy or sell the pair in the lagging dealers account( as it must follow the leader) and collect the profits. He claims this is no lose, easy money and his lifestyle reflects that he walks the talk. What am I Missing??

Thank you.

Austin
More...
It's "arbitrage."

Not allowed.

The Interbank doesn't even allow it.

fx
 
Quote from FXsKaLpEr:

It's "arbitrage."

Not allowed.

The Interbank doesn't even allow it.

fx
More...

I admit I am a bit naieve when it comes to the forex scam, but I find this very hard to believe. Where is it written that a person cannot arb spot forex?

Show me some proof. I think this is incorrect.
 
Quote from hanseng1:

I admit I am a bit naieve when it comes to the forex scam, but I find this very hard to believe. Where is it written that a person cannot arb spot forex?

Show me some proof. I think this is incorrect.
More...
Read the fine print at fx brokerages.

they discourage it and dissuade you from doing it by closing your account.
 
Quote from FXsKaLpEr:

It's "arbitrage."

Not allowed.

The Interbank doesn't even allow it.

fx
More...

you are quite mistaken

first of all "interbank" is a general term, it is not a consolidated entity, it reffers to all of the collective entities who have tradintionaly been banks, hence the term....there is no "interbank", and organisation who deals currency is "interbank" and the assertion that arbitrage is somehow banned in currency markets is also quite untrue, many funds are exclusively currency arb funds, maybe some bucketshop you have dealt with says you cannot arb btwn their prices and another dealers, but that is hardly enforceable....
 
Quote from phenomena:

you are quite mistaken

first of all "interbank" is a general term, it is not a consolidated entity, it reffers to all of the collective entities who have tradintionaly been banks, hence the term....there is no "interbank", and organisation who deals currency is "interbank" and the assertion that arbitrage is somehow banned in currency markets is also quite untrue, many funds are exclusively currency arb funds, maybe some bucketshop you have dealt with says you cannot arb btwn their prices and another dealers, but that is hardly enforceable....
More...
*YAWN* .. good luck with that. :cool:

fx
 
Quote from FXsKaLpEr:

*YAWN* .. good luck with that. :cool:

fx
More...


Even I know that its legal and done all the time in the FX market. What you are refering to to is arbing within a single dealer, which is discouraged. This system is not even arbing-- since you are only making a single trade with a single dealer but watching for direction from several before the trade is made. Like I said, I am new to this, but I do know the definitions.

Do all the dealers move at once now?? Is this why this method no longer works?

AUstin
 
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