OANDA cheating ?!

Hayek · Jun 12, 2005

Quote from late apex:

Those spreads can be expected to widen, in a predictable, known way, from at least a few minutes before to at least a few minutes (or longer) after a potentially market-moving news event.

How large can the spreads vary to, for example for trade balance and nfp?

virgin · Jun 12, 2005

Misha7,

The people behind Oanda are academics .

I trade SIZE with them and never had
any issues.

Maybe just open an account and see
for yourself..

Have a look at their fund ;

www.olseninvest.com

Top notch I would say (more than
50 million dollars under management)

And no, I am not affliated with them
in any way, like Globalfxllc(banned
now) was saying all the time.

Maxprofit$ · Jun 12, 2005

Quote from misha7:

I am not saying that Oanda manipulates quotes or that I have any reason to doubt their ethics but can't you see that the LOWER the spread you are offering, the HIGHER the need to bucket trades?

That's nothing but the effect of competition, trying to capture market shares by lowering your profit margin.

Max$
competition economist

Maxprofit$ · Jun 12, 2005

Quote from misha7:

This can go on, but it's getting boring. Anyway, no broker will hedge individual trades unless it's a substantial client (e.g. 10 mil and up). There is just no physical way to do it with rapidly moving prices, hundreds of trades per minute and miniscule volumes for every trade. What they may hedge is the net position of the dealing desk. But considering the amateurs that work on most of these dealing desks (e.g. FXCM, CMS) I doubt that they ever do even that.

If they don't hedge in the interbank market, where does the interest rate payment comes from? They pay it for fun???

They pay (or charge) it because they have to pay (or receive) it too, because... THEY HEDGE!!!!!!

Maxprofit$ · Jun 12, 2005

I don't get why would anyone get in the trouble of building an internet software and invest big money just to screw little pathetic internet day traders.

Angry customers means you'll lose your buisness. So if you want to enter the "internet people screwing" buisness, you got to invest very little money to be worth it!

Like, open a web site that advertise miraculous plants that grows in the desert of africa and makes women's butt tinner! You'll make far more money that way!!!

Maxprofit$ · Jun 12, 2005

and if you lose money trading, BE A MAN AND BLAME IT ON YOURSELF, NOT ON THE BROKER!!!

I'm so sick of these babies.

Can we close this tread now?

misha7 · Jun 13, 2005

Quote from Maxprofit$:

If they don't hedge in the interbank market, where does the interest rate payment comes from? They pay it for fun???

They pay (or charge) it because they have to pay (or receive) it too, because... THEY HEDGE!!!!!!

They're gonna make you pay rollover no matter what their risk management strategy is. And you are a complete waste of bandwidth.

ElectricSavant · Jun 13, 2005

There is no rollover at Oanda...Its merely an interest payment or deduction at 17:00 est...no change in prices of your pairs...

Quote from misha7:

They're gonna make you pay rollover no matter what their risk management strategy is. And you are a complete waste of bandwidth.

misha7 · Jun 13, 2005

Quote from ElectricSavant:

There is no rollover at Oanda...Its merely an interest payment or deduction at 17:00 est...no change in prices of your pairs...

Well this is the same as rollover, just called differently. There are plenty of firms that call it rollover and it operates exactly the same way you describe, with no change in the price of the pairs. I was told the NFA are generally not too happy with the use of the word 'interest' in these cases but that's a different story...

ElectricSavant · Jun 13, 2005

I think it is more the IRS..as that is the only year-end computer generated report they can computer crosscheck....

Quote from misha7:

Well this is the same as rollover, just called differently. There are plenty of firms that call it rollover and it operates exactly the same way you describe, with no change in the price of the pairs. I was told the NFA are generally not too happy with the use of the word 'interest' in these cases but that's a different story...