Forex In The Modern World

LoganSilver

LoganSilver

I see alot of traders in this subforum expressing forms of indecision towards the legitimacy of the FX market in modern days. With comments such as "In the old days, sure you could trade FX professionally" etc, why is there this indecision? Is it due to a lack of education about the market or just other tradeable markets are spoken about more?

Professional, consistently profitable trading is absolutely attainable in the Foreign Exchange markets.
Is there a learning curve and risks involved? Absolutely, but the same rings true for any investment class.
 
I am trying to get information about option trading (mostly spreads) in forex OTC market. I am familiar with option on Equity and some familiarity with FX but can not find much info Option on FX . looked at CME site and volume is very small .
I appreciate any suggestion or recommendations. Thanks
 
ArcA said:
I am trying to get information about option trading (mostly spreads) in forex OTC market. I am familiar with option on Equity and some familiarity with FX but can not find much info Option on FX . looked at CME site and volume is very small .
I appreciate any suggestion or recommendations. Thanks
More...

Forex Options are currently a very small market in terms of people trading it. It is mainly larger institutions or high net worth individuals. I know IKBR offers FX options.
 
What are you selling?

I agree with your post, I traded cash fx for over 10 years now, close to 600mln usd notional equivalent per month. The only reason I see why fx got such bad press is because it's unregulated and hence there are tons of shady brokers out there. Successful fx traders for me are the absolute top predators in animal kingdom. No other asset class requires being so on top of events, economic data releases, news... It requires a keen understanding of macro economic theory, interest rates and fixed income markets and commodity markets in general, up to date knowledge of other large market participants, knowledge of soft exotics that do at times impact cash fx

Sometimes one must be around the desk for 12-16 hours and even get up at night. Show me some stock punters that need to put in this much effort. To me it's one of the most complex asset classes because quite a number of additional variables impact currencies. The reason so many who attempted to make money in fx fail is because they think following a little price action is all there is to it.

But cash fx in my book is also the most rewarding because the risk of insider trading and manipulation is absolutely minimal, it trades round the clock with mostly deep liquidity, hence one can get in and out at an instance. Add to that the tightest avg spreads of any asset class and you have an incredible instrument that really puts the reason for failure squarely into the camp of the trader.

LoganSilver said:
I see alot of traders in this subforum expressing forms of indecision towards the legitimacy of the FX market in modern days. With comments such as "In the old days, sure you could trade FX professionally" etc, why is there this indecision? Is it due to a lack of education about the market or just other tradeable markets are spoken about more?

Professional, consistently profitable trading is absolutely attainable in the Foreign Exchange markets.
Is there a learning curve and risks involved? Absolutely, but the same rings true for any investment class.
More...
 
DiceAreCast said:
The reason so many who attempted to make money in fx fail is because they think following a little price action is all there is to it.
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short term that is all there is........price action reflects everything.

traders fail, all traders, in anything, because they do not know at what point they are wrong and keep hoping.
 
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