What is the realistic profit goal from forex?

I've thought otherwise, seeings that the ForEx market (supposedly) does around 2 trillion dollars a day in volume.

Plenty of liquidity there, I'd think, to continue doubling into the $100s of billions I would imagine.
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DrawDown,

You mentioned trading in 100s of mils and billions in currency markets. I said that it is way out of my league because it will require intra bank accounts and relationships, which a small trader like me do not have.

As you probably know, by trading spot forex at retail market makers/brokers you are NOT exposed to 2 trillion liquidity. You basically just exposed to small platform of this broker and not intra bank. With that in mind, CME currency futures is a much batter instrument to choose.

Thanks for your offer anyway.

redduke
 
Quote from RedDuke:

DrawDown,

You mentioned trading in 100s of mils and billions in currency markets. I said that it is way out of my league because it will require intra bank accounts and relationships, which a small trader like me do not have.

As you probably know, by trading spot forex at retail market makers/brokers you are NOT exposed to 2 trillion liquidity. You basically just exposed to small platform of this broker and not intra bank. With that in mind, CME currency futures is a much batter instrument to choose.

Thanks for your offer anyway.

redduke
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RedDuke,

I disagree.

If I was rooted in the theory that my trading in the ForEx is limited by anything, I'd get into another line of work.

According to my broker, they're hooked up to a number of major (Interbank) banks and their liquidity is more or less bottomless.

Unless they are outright lying to me. I don't think that's the case.

If it were not so, then all our efforts would be no better than playing a child's game.

I believe the 'open market' would accomodate whatever I throw at it - under fair trade rules - whether that's penny trades or $100bln-dollar trades.

The main reason I am in currency trading is due to the extreme depth of liquidity it provides to everyone equally.

I view the $2 trillion dollars exchanged daily as ALL being up for grabs to anyone who trades system(s) superior enough to bag it.

I see myself as the modern day ForEx version type of SOES Bandit... That my broker will back me on any style of trading I engage in - without reservation - for any amount of money I can trade at any time.

It's only a fluctuation,

DD
 
Quote from DrawDown:

RedDuke,

I disagree.

If I was rooted in the theory that my trading in the ForEx is limited by anything, I'd get into another line of work.

According to my broker, they're hooked up to a number of major (Interbank) banks and their liquidity is more or less bottomless.

Unless they are outright lying to me. I don't think that's the case.

If it were not so, then all our efforts would be no better than playing a child's game.

I believe the 'open market' would accomodate whatever I throw at it - under fair trade rules - whether that's penny trades or $100bln-dollar trades.

The main reason I am in currency trading is due to the extreme depth of liquidity it provides to everyone equally.

I view the $2 trillion dollars exchanged daily as ALL being up for grabs to anyone who trades system(s) superior enough to bag it.

I see myself as the modern day ForEx version type of SOES Bandit... That my broker will back me on any style of trading I engage in - without reservation - for any amount of money I can trade at any time.

It's only a fluctuation,

DD
More...


your views on the spot fx mkt showed how little you know nad your 'broker' which quite obv is oanda is just a simple market maker who trades against you. You're obv not smart enough to figure that out ... or I maybe wrong and when you trade $1 with them they can most def send that order to a bank who will gladly fill the trade and pick up the $0.0001 in commision.
 
Hi Sccz97,

Thanks for posting this, I figured there was no point of arguing. What was shocking to me is how many people believe that by trading at retail forex brokers, they are exposed to 2 trillion $ liquidity. When I try to explain that this liquidity is there for large players and corporations currency hedges, most do not believe.

Regards,
redduke
 
oanda is a freakin' dealin' desk...liquidity there is provided by them, takin' every single side of your transaction. coniz get u self an education before blowin' up your 10th 500 dollars acct in the fx mkt.
 
Quote from RedDuke:

Hi Sccz97,

Thanks for posting this, I figured there was no point of arguing. What was shocking to me is how many people believe that by trading at retail forex brokers, they are exposed to 2 trillion $ liquidity. When I try to explain that this liquidity is there for large players and corporations currency hedges, most do not believe.

Regards,
redduke
More...

Probably due to the borkerage ads that routinely tout it. And what's more, not all of the $2 Trill is spot trading. Spot only makes up a portion. Swaps and forwards take up a bigger percentage. Realistically, spot trading is somewhere around $600 billion daily.

Though, I contend that an ECN will have a greater liquidity exposure than a MM. But I suspect since most dealing banks (which ECNs call liquidity providers) will give priority to orders north of a million since that is their usual minimum.

But all in all, FX futures are superior to spot forex for retail traders in many, many ways. I believe that remains true until you get north of $10 million notational value in FX futures. Not that one would have to give up trading FX Futures but might want to add some spot trading. Also, spot spreads at nearly all retail houses can be very unstable. By that I mean, can get pretty wide and jump around at critical times. Whereas with FX futures, Euro FX in particular, 1 pip spread is the norm with the occasional 2 pip.

Will be very interesting when CME/Reuters FX Marketspace comes to town. It'll probably boost the volume of FX futures and FX future players will be able to play with the spot on GLOBEX to supplement thier trading liquidity needs.
 
Quote from ddunbar:

But all in all, FX futures are superior to spot forex for retail traders in many, many ways. I believe that remains true until you get north of $10 million notational value in FX futures. Not that one would have to give up trading FX Futures but might want to add some spot trading. Also, spot spreads at nearly all retail houses can be very unstable. By that I mean, can get pretty wide and jump around at critical times. Whereas with FX futures, Euro FX in particular, 1 pip spread is the norm with the occasional 2 pip.

Will be very interesting when CME/Reuters FX Marketspace comes to town. It'll probably boost the volume of FX futures and FX future players will be able to play with the spot on GLOBEX to supplement thier trading liquidity needs.
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Confusing/ contradicting statements. If their futures are so good if not perfect, why bother launching spot until now. :confused:
 
Quote from OddTrader:

Confusing/ contradicting statements. If their futures are so good if not perfect, why bother launching spot until now. :confused:
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It's called a collaboration. Reuters deals with spot. CME deals with futures. "You got your chocolate in my peanut butter! You got your peanut butter in my chocolate!"

And voila! We have the Reesebar! Or a platform that trades FX futures and spot. And clears both.

EDIT: I should add that FX Marketspace is a joint effort of Reuters and the CME. To minimize confusion.
 
Quote from ddunbar:

It's called a collaboration. Reuters deals with spot. CME deals with futures. "You got your chocolate in my peanut butter! You got your peanut butter in my chocolate!"

And voila! We have the Reesebar! Or a platform that trades FX futures and spot. And clears both.

EDIT: I should add that FX Marketspace is a joint effort of Reuters and the CME. To minimize confusion.
More...

OT.
 
Quote from ddunbar:

It's called a collaboration. Reuters deals with spot. CME deals with futures. "You got your chocolate in my peanut butter! You got your peanut butter in my chocolate!"

And voila! We have the Reesebar! Or a platform that trades FX futures and spot. And clears both.

EDIT: I should add that FX Marketspace is a joint effort of Reuters and the CME. To minimize confusion.
More...

unless enough ppl start using it I fail to see how the liquidity will even beat the poor liqudiity on fx futures in its current state. I can but hope
 
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