Two questions...

B

bellman

Hey there, I'm a newbie. I've been developing and testing a daytrading/ money management strategy for equities over the past few month that I believe, hope, pray will be successful. However, trading currency is VERY enticing for a variety of reasons. Here are a couple of questions I need answered before I pursue the idea of currency trading further.

1. Is Forex the only market for daytrading currency?
2. Is it a single market or comprised of multiple markets with arbitrage opportunities?

That is all for now. Thanks so much for your help. If I get a good response from you guys, I have many, many more questions to ask... Hopefully over the long run I can contribute something back in return.
 
Quote from Kastro_316:

May i ask why you posted twice on the same thing?
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Very sorry, it was an accident. Midway through typing the message I hit a combination of keys that somehow submitted my post. :confused: I then quickly retyped the questions and then unknowingly posted the same message a second time. My apologies.
 
Quote from bellman:

Hey there, I'm a newbie. I've been developing and testing a daytrading/ money management strategy for equities over the past few month that I believe, hope, pray will be successful. However, trading currency is VERY enticing for a variety of reasons. Here are a couple of questions I need answered before I pursue the idea of currency trading further.

1. Is Forex the only market for daytrading currency?
2. Is it a single market or comprised of multiple markets with arbitrage opportunities?

That is all for now. Thanks so much for your help. If I get a good response from you guys, I have many, many more questions to ask... Hopefully over the long run I can contribute something back in return.
More...


1. I’m not sure what you mean by the first question. You can trade spot FX or futures, but I’m not sure if that is what you are asking.

2. The short version: Yes, there are many market makers and opportunities for arb.

There is no central exchange for spot FX trading. Think of it as private connections with many archipelagos. There are many opportunities for scalping/picking between different brokers but if you do it too often against a single counterparty you will be put on dealer intervention. For retail traders there are two types of trading accounts generally available. Most retail traders are on platforms with the sole counterparty to the trade being the dealing desk of the firm they open up with, but you should also consider an ECN type of platform that gets liquidity from several different providers. The opportunity for true arbitrage is shrinking because bank pricing keeps on improving and there is so much business that no one has any incentive to support predators.

Trader/God
 
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