The best forex question ever

Being involved in the market during years when the markets had profits to give. Mistakenly, some think the market always has profits to provide to the screen-based non-customer driven trader. Random volatility and noise does not necessarily equate to a tradeable market. Major trends and fundamental shifts in currency valuations provide one of the few if not the only true profit opportunity. Sadly, these are not always in play in currencies.
 
Quote from NTB:

Being involved in the market during years when the markets had profits to give. Mistakenly, some think the market always has profits to provide to the screen-based non-customer driven trader. Random volatility and noise does not necessarily equate to a tradeable market. Major trends and fundamental shifts in currency valuations provide one of the few if not the only true profit opportunity. Sadly, these are not always in play in currencies.
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That's pretty advanced. You sound like a fund manager.

Are you?

Iconoclast
 
In my opinion, Oanda continues to simplify and enhance the ability for retail traders to lose money more easily in the forex market. As a trading platform, Oanda is probably one of the best for the retail trader in terms of ease of use and user-friendly capability. The addition of BoxOptions seems to be consistent with bringing additional complex product offerings to the retail public easily tradeable by even the most inexperienced participants. With that said, inexperienced participants should not be trading forex options and especially intra-day forex options.

The fact remains, the retail public (and the majority of institutional players) have absolutely no edge to trade the currency market let alone these new BoxOptions. To be sure, in my opinion, the superficial simplicity of the product will likely mask the huge mathematical edge and spreads being imbedded by the house in the pricing of these products. Since there is no competitive market for these "simple" products, and you must trade against Oanda, I am convinced that the imbedded spread taken by the house in pricing this product would make it a mathematical certainty of loss by any and all participants playing in this product even over a relatively short period of time. I must say that it is a creative offering by Oanda and one which will probably garner attention by the trading junkies for a period of time until it becomes apparent that the game is too heavily rigged against them.

I would view this product as a form of entertainment not much different than a video game for example. For a trader seeking to make profit, I would run, not just walk away from this product. I believe you have better odds in Vegas.

This is not a commentary on Oanda as a firm. I believe they offer a solid trading platform and are likely a financially stable firm (although I really have no idea). In other words, if you want to gamble, I think they offer a fine casino to do it in.
 
Quote from NTB:

In my opinion, Oanda continues to simplify and enhance the ability for retail traders to lose money more easily in the forex market. As a trading platform, Oanda is probably one of the best for the retail trader in terms of ease of use and user-friendly capability. The addition of BoxOptions seems to be consistent with bringing additional complex product offerings to the retail public easily tradeable by even the most inexperienced participants. With that said, inexperienced participants should not be trading forex options and especially intra-day forex options.

The fact remains, the retail public (and the majority of institutional players) have absolutely no edge to trade the currency market let alone these new BoxOptions. To be sure, in my opinion, the superficial simplicity of the product will likely mask the huge mathematical edge and spreads being imbedded by the house in the pricing of these products. Since there is no competitive market for these "simple" products, and you must trade against Oanda, I am convinced that the imbedded spread taken by the house in pricing this product would make it a mathematical certainty of loss by any and all participants playing in this product even over a relatively short period of time. I must say that it is a creative offering by Oanda and one which will probably garner attention by the trading junkies for a period of time until it becomes apparent that the game is too heavily rigged against them.

I would view this product as a form of entertainment not much different than a video game for example. For a trader seeking to make profit, I would run, not just walk away from this product. I believe you have better odds in Vegas.

This is not a commentary on Oanda as a firm. I believe they offer a solid trading platform and are likely a financially stable firm (although I really have no idea). In other words, if you want to gamble, I think they offer a fine casino to do it in.
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I for one appreciate the insights of a hedge fund manager. I will read anything NTB writes, with great interest.

We're fortunate to have a real hedge fund manager on this board to share his trading knowledge.

NTB, thank you!

I've read traders simply bash Oanda, but have not read in detail the reasons why, the way NTB spells it out.

What NTB is saying, clearly, is that Oanda purposefully rigs their platform to cheat retail traders, "embedding" Box Option pricing in the favor of Oanda and against retail traders.

This is good to know because I think people lose too much money trading forex as it is.

Thanks again NTB for the heads up.

Iconoclast
 
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