Forex ECN, VS NASDAQ ECN

V true Viper..

Yes it was common practice on certain institutional ( I dont have much experience with retail) that the banks will have a criterea that if the stop order is within certain amount of pips of the market they do not allow an order to be placed.

TBH I dont know why its such an issue these days unless the underlying FX desk is actually looking after the orders manually, then it comes down to latency/when they receive the order.
 
Hotspot does not let banks have a look at the trade before agreeing to it, Currenex do.

Of course that must suit the banks, I wonder on slippage on Currenex whether theres a little you scratch my back ill scratch yours going on....
 
Every forex trader needs to read this thread. I have been talking about this stuff for a while. Retial forex traders are not exposed to real forex market, just virtual world of market makers.
 
Quote from icebergorder:

Hotspot does not let banks have a look at the trade before agreeing to it, Currenex do.

Of course that must suit the banks, I wonder on slippage on Currenex whether theres a little you scratch my back ill scratch yours going on....
More...

So it sounds like FX futures and hotspot hold banks to their trades. That isn't a very long list. :(
 
Quote from riskarb:

I'm trading with Hotspot FXi. I'll respond to this thread when I have more experience with the platform.
More...

thanks riskarb - appreciate your offer to provide feedback.
 
What Currenex brokers offer the best
starting-out (since it's adjustable) hub
liquidity ?

Manfinancial
ODL
FXCMpro
Fimat
PFG
ADM
GFT
FCStone
Marex
 
RE true market vs. the "magical" market offered to customers. One of the sources for market indications I monitor is Metatrader. I often see short-term spikes in their quotes/charts 0-10 pips. Are these indications of the true market?

EX "Money Center Bank A" receives a buy order from a corporate in GBPUSD. So to thank the corporate and really to do the trade profitably they sell GBPUSD to the corporate at a 5 pip premium. But in their quoted, distributed market they stay in line with everyone else making a market in GBPUSD. That is they don't want to show the 5 pip higher market to others = show a 5 pip higher bid = get whacked byt someone else.

So variations of this happen all day long based on spot, futures, forwards, options transactions, but executed prices vary from what is shown to majority of customers.

Reason why this important? Lets say you are long GBPUSD when the corporate comes in. You will never be able to take advantage of the short term spike whereas in stocks/options, etc. you would... In centralized markets when someone pushes the market, everyone sees it.
 
Quote from MiamiHurricanes:

RE true market vs. the "magical" market offered to customers. One of the sources for market indications I monitor is Metatrader. I often see short-term spikes in their quotes/charts 0-10 pips. Are these indications of the true market?

EX "Money Center Bank A" receives a buy order from a corporate in GBPUSD. So to thank the corporate and really to do the trade profitably they sell GBPUSD to the corporate at a 5 pip premium. But in their quoted, distributed market they stay in line with everyone else making a market in GBPUSD. That is they don't want to show the 5 pip higher market to others = show a 5 pip higher bid = get whacked byt someone else.

So variations of this happen all day long based on spot, futures, forwards, options transactions, but executed prices vary from what is shown to majority of customers.

Reason why this important? Lets say you are long GBPUSD when the corporate comes in. You will never be able to take advantage of the short term spike whereas in stocks/options, etc. you would... In centralized markets when someone pushes the market, everyone sees it.
More...

I am so looking forward to the CME/Reuters thing paying off. But will the banks support it because it threatens to take away one of their biggest edges?
 
You must log in or register to reply here.
Back
Top