cvds16: you appear confused and mixed up, and comparing apples with bananas
what I've stated about spreads relates to the fx broker's fee for processing a trade
from some brokers the spread is constantly variable, and as well, may at any time
and without warning, widen, considerably
futures contracts have a FIXED cost fee - commission for processing a trade
cvds16: "if you go market there is a spread to pay in fx-futures, the total spread
will be much more than oanda cost in like 98% of the times."
I have no idea why you think that
not withstanding what's stated above, the price you'd Buy/Sell at market at Oanda
would be the same price you'd Buy/Sell the futures contract, excepting, there's a
difference in what Oanda considers the 'current price'; compare Oanda's quotes with
the chart prices of say Alpari, FXCM, FxPro, Gain etc, and, the futures market; but
even simultaneous market orders don't gurantee a same price fill since the various fx
brokers price quotes are not in synch with each other, nor the Globex, neither are
their spread/fees the same, and even Oanada's MT4 price quote is different to the
Oanda FXTrade quote
futures contracts have a Bid/Ask difference of usually 1-2 pips - often more for the
M6E and E7 due to their low volume, however a market order is just that, and, if in
the milliseconds of deciding to and then clicking on the Buy Market/Sell Market
button the futures price jumps +/- 4 pips and the fx broker's price doesn't, then I
guess you would think that "the total spread will be much more than oanda cost"
of course, if that 4 pips jump resulted in a lower Buy price or higher Sell price than
Oanda's price . . .
the term spread then refers to both a Bid/Ask price difference, And, the fee an fx
broker charges to process the trade, which is derived from the spread, and imo
should anyways be referred to as an fx broker's commission to avoid the confusion
some have regarding the 'Bid/Ask spread' and commission/fee fx brokers charge for
processing a trade
the Bid/Ask difference has nothing to do with the cost of trading a futures contract/
lot; the price paid is the price paid in both cases, the fee however that is charged
in order to execute the trade is Fixed when trading futures, Variable when trading fx
and calculated on the Bid/Ask spread that broker has determined at the time of that
trade and which may be a smaller or larger cost minutes or seconds later
of course one's entitled to use Limit Orders guaranteeing the price paid, at the same
fixed cost with a futures broker, versus a guaranteed price paid with an fx broker but
not at a fixed cost, and at who knows what spread/fee/commission price/cost
CME Globex currency futures markets and retail fx broker markets are not the same
so far as being "fixated with NFP", I was answering virtualmoney's questions, so I
suggest you take your fixation with my response to virtualmoney and give him your
opinion about NFP trading
however, 'news trading' is not limited to the NFP; 'news reports' are being released
'all the time' which you'd of course know about because you checked the calendar
here for instance:
http://www.forexfactory.com/ as well as having seen the effect of
say an Italian flash report causing Oanda's spread to widen to 10 pips for several
minutes before/during/after the release, accompanied by large erratic price moves
oh and lets see if Oanda disconnects the feed this Friday as it commonly does so
you can't trade - neither enter a new trade nor close an existing position
if in doubt about what 'news trading' is, perhaps this example may help, and I see
there were 6 releases last week that the analyst/trader thought tradeable:
http://www.forexpeacearmy.com/forex...g-signals-overview-february-21-25-2011-a.html
and don't forget the news 'indictators' for both MT and NT that display realtime news
reports, economic releases etc on the chart page
