marketsurfer trys forex--part 2

Quote from shellback:



What do you consider "big currency guys"? Someone that trades 100 or 1000 contracts a day? Heck, I know I'm not a big currency guy, but I do move 50 to 100 dollars a day in the spot market. Where can you trade almost any currency pairs you want? I trade up to 30 pairs, not just a handful of the majors.
More...



hi,

can you explain the advantage of spot over futures when dealing with major pairs like eur/usd ? i can see no advantage in a daytrading enviroment.

i understand that you are saying the diversification is greater in the spot market.

any light you can shed on this subject is apprieciated.

guys like soros, and the hedgefunds is whom i was refering.


thanks !

surfer:)
 
Quote from marketsurfer:



The spot forex market is a $1.5 trillion daily market
compared to the $30 billion per day futures market.

The big guys do trade spot.

hi,

can you explain the advantage of spot over futures when dealing with major pairs like eur/usd ? i can see no advantage in a daytrading enviroment.

i understand that you are saying the diversification is greater in the spot market.

any light you can shed on this subject is apprieciated.

guys like soros, and the hedgefunds is whom i was refering.


thanks !

surfer:)
More...
 
Quote from josbarr:

More...



yes, i have heard these statistics but don't believe them. i have never seen verification of these figures. if it exists, i would like to know. there is not even volume on spot, how can dollar amount be determined ?? it makes little to no sense.

best,

surfer :)
 
Quote from marketsurfer:

can you explain the advantage of spot over futures when dealing with major pairs like eur/usd ?
surfer:)
More...

Hi Surfer,

I use futures with IB in the morning, and OANDA in the evening with the Asian markets. I trade only EUR/USD. I use OANDA in the evening because the futures market is not as liquid as the spot market at that time. My concern is that if there was a big swing in the spot market, by the time my order was filled in the futures market, I would have much more slippage than 2 pips. So, I will give 2 pips up in the evening, and pay a commission during the day. During the day I trade EC contracts along with NQ.

Also, when the futures markets are closed, the forex markets are open (the spreads approach 10 pips however).


Mike
 
Surfer,
The big currency guys do trade the spot, or they trade forwards. Soros doesn't trade the futures, he trades the spot.
The liquidity is a lot better in the spot, I don't care who said what about futures.
You could probably buy 200,000,000 euros without moving the market if you do it right.
 
Quote from swoop[TR]:

Surfer,
The big currency guys do trade the spot, or they trade forwards. Soros doesn't trade the futures, he trades the spot.
The liquidity is a lot better in the spot, I don't care who said what about futures.
You could probably buy 200,000,000 euros without moving the market if you do it right.
More...


thanks for the info, swoop. however, i think it needs to be made clear that the "big guys" are dealing directly in the interbank market and do not use dealers nor pay spreads. do you know where the dollar volume of spot quoted by the dealers can be verified ?

thanks !

surfer
 
Quote from ramora:



Hi Surfer,

I use futures with IB in the morning, and OANDA in the evening with the Asian markets. I trade only EUR/USD. I use OANDA in the evening because the futures market is not as liquid as the spot market at that time. My concern is that if there was a big swing in the spot market, by the time my order was filled in the futures market, I would have much more slippage than 2 pips. So, I will give 2 pips up in the evening, and pay a commission during the day. During the day I trade EC contracts along with NQ.

Also, when the futures markets are closed, the forex markets are open (the spreads approach 10 pips however).


Mike
More...


hi,

i like your approach, using the best of both worlds. thanks for the info.

best,

surfer
 
On bloomberg, you can have the bid/ask spread of the interbank in real time. On average 2-3 pip spread on EUR/USD.
Most hedge funds do not participate in the interbank. They talk to brokers and get filled like everyone else.
 
Quote

Today, Bruce Kovner may well be the world's largest trader in the interbank currency and futures markets. ...

Question: When you trade currencies, do you use the interbank market or the futures market?

Answer (Kovner): I only use the interbank market, unless I am doing an arbitrage trade against the IMM. ... The liquidity is enormously better, the transaction costs are much lower, and it is a twenty-four-hour market, which is important to us because we literally trade twenty-four hours a day.

--- Market Wizards, 1989, by Jack Schwager

Unquote

:confused:
 
You must log in or register to reply here.
Back
Top