fx futures

talked to guy at globalfutures the other day saying I was interested in moving from cash to futures . I told him i like totrade gbp and he sort of tried to convince me cash forex is better beacause of fills. They also do cash forex at global and maybe they make more on cash fx. He said a big problem is if your in a position and it goes against you fast (a breakout) its hard to get out. He said it works good when your in a winning side. I guess the only way for the truth is to open an account and do some trading.
 
Friday I had a long position in Euro FX Futures at 1.2157 with a stop at 1.2140. I got up to go to the bathroom, and when I came back I was stopped out at 1.2140 while the Euro was way below that. I did not get any slippage whatsoever in what I consider a fast market. So far so good.

What if this happened in the middle of the nite? How bad would the slippage be. My max trade will be 1-2 contracts. I have a relativly small account and only risk 2% per trade. Maybe some horrible news hits the wire in europe at midnight CST.

Appreciate any expericed traders comments.

Regards
Steve
 
slippage is rarely more than 1 pip at night. Many times you get your stop price. Electronic trading with market depth is the way to go for close stops
 
Quote from spersky:

Friday I had a long position in Euro FX Futures at 1.2157 with a stop at 1.2140. I got up to go to the bathroom, and when I came back I was stopped out at 1.2140 while the Euro was way below that. I did not get any slippage whatsoever in what I consider a fast market. So far so good.

What if this happened in the middle of the nite? How bad would the slippage be. My max trade will be 1-2 contracts. I have a relatively small account and only risk 2% per trade. Maybe some horrible news hits the wire in europe at midnight CST.

Appreciate any expericed traders comments.

Regards
Steve
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steve - shouldn't be too bad.

i think the biggest risk is when globex shuts down for an hour in the evening.

all stops are cancelled (so make sure you stick gtc on the end) and there can sometimes be spikes on each side of the closing hour which are often fakes.

sometimes the market may make a move when globex oens up an hour later if the cash has moved significantly during that time.
 
Quote from watchdaride:

talked to guy at globalfutures the other day saying I was interested in moving from cash to futures . I told him i like totrade gbp and he sort of tried to convince me cash forex is better beacause of fills. They also do cash forex at global and maybe they make more on cash fx. He said a big problem is if your in a position and it goes against you fast (a breakout) its hard to get out. He said it works good when your in a winning side. I guess the only way for the truth is to open an account and do some trading.
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well id tell your broker, that although he may be able to speak in 12 languages, he is a jerk and shouldnt be spouting this rubbish.

your assumption is correct - there is more money in fx (for your broker) which is why he wants you to trade there. it is an unregulated market and you are trading against global ONLY, not the spot market like he wants you to believe.

i can GUARANTEE there is more liquidity on globex for bp than the liquidity put up by global.

do yourself a favour - ditch your broker. if he said this he is a liar. trading is hard enough without you being lied to by some thief who will mis quote you to take your stop out.
 
This is all interesting because if there sufficient PM liquidity on Globex for small lot trading (up to 20 contracts??) I do not understand why any small-lot trader would trade FX cash. Even at the better brokers like IB, between the bigger spread and/or comish the costs are higher. Plus the the "market" is unregulated and basically unaccountable.

I began to look at FX cash because I assumed the reduced liquidity on PM Gobex would give stop pikers the ability to push things around a bit. Anyone experienced that with PM GLobex?

Thanks
 
Globex is easily a better play for the small trader. Cash market traders get taken advantage of continuously. When I am talking about liquidity , it is generally pairs with USD. Euro is generally my trade of choice. Tremendous liquidity.
 
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