Your Broker Is Your Enemy?

Quote from GabrieleV:


If I want (need) to trade spot, is because i don't want to (I can't) trade futures.
More...

Quote from GabrieleV:

Spot is OTC, Future is regulated.
Operationally, to tell something more specific, on Future you have a book and volume, on spot you haven't (at least meaningful values...).
You can't trade future in the same way as spot.
The liquidity of spot is not comparable to the one of future.
More...
Yes futures is better from regulation point of vieuw, because of volume (I always have the chart up).
Then explain in detail (no general analogies) because you don't make yourself clear because I don't understand: why do you trade spot ? Don't tell me it's liquidity: for all normal purposes futures are liquid enough. For the record I do have a book with IB spot.
 
Quote from cvds16:

why do you trade spot ? Don't tell me it's liquidity: for all normal purposes futures are liquid enough. For the record I do have a book with IB spot.
More...

Yes, liquidity is a main reason for me.
In regulated market you have to enqueue order to be filled. In Spot no. When you click "buy" you have bought, when you click "sell" you have sold (ok requotes may happen, but it is instantaneous...)
The book you have with IB is related only to IB customers, so I personally would not consider it ...

May be Spot is more "easy" than Future: it's a market in the "village" common sense ;).

I don't say Future is better/worst than Spot.
I say only it's different.
 
I find this a very strange answer: if you want to buy 10 futures, you are instantanously filled, if you want to sell them they are filled too immediately. Bid and ask in something like euro is often in the hundreds.
 
Quote from DRiSsT:

I heard that when you are new to forex all your broker wants is for you to open a live account so they can bid on the opposite side of your trade whenever you place one, they know you will lose your money therefore not only take the pip spread profits but all your money. Is this true?:confused:
More...

Well someone's gonna have it, may as well be the marketmaker :p
 
Quote from GabrieleV:

Yes, liquidity is a main reason for me.
In regulated market you have to enqueue order to be filled. In Spot no. When you click "buy" you have bought, when you click "sell" you have sold (ok requotes may happen, but it is instantaneous...)
The book you have with IB is related only to IB customers, so I personally would not consider it ...

May be Spot is more "easy" than Future: it's a market in the "village" common sense ;).

I don't say Future is better/worst than Spot.
I say only it's different.
More...

In futures you have immediate execution when using market orders, execution is guaranteed by the exchange, 100 %

In spot ,not so, your "friendly" market maker decides WHEN and at WHAT price he is going to fill you.
When trading spot choose an ECN with prices from competing market makers like IB,EFX,Hotspot...

Futures are "better" because you have a guarantee from an independent party = exchange that you will get filled at the best price available

In spot your "friendly" market maker is trading against you , he is at the other side of your trades, HUGE conflict of interest.


P.S. the book with IB is not only other customers but also banks.
 
Quote from fluttrader:

When trading spot choose an ECN with prices from competing market makers like IB,EFX,Hotspot...
More...

I DO work on LondonFX marketplaces, so this is not a worry for me ...
 
You must log in or register to reply here.
Back
Top