Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

jonbig04

Spot FX Tips for Futures Traders

Recommended Posts

Some of us who trade futures are thinking of also looking into spot forex for various reasons (small position sizes, volatility, flexible trading hours etc).

 

However there seem to be a lot of horror stories surrounding spot fx and I'm a little tentative about just picking a broker out of thin air. I'm hoping some of you spot traders can chime in with some general tips for us futures guys.

 

My biggest question is what to look for in a broker? There are a million of them out there. Any other tips about trading spot that us futures traders wouldn't know are appreciated. :beer:

Share this post


Link to post
Share on other sites

Check out a thread started by Cory on this topic of spot FX and brokers. The only other tips I can comment on are that price movement is not a reflection of the last trade as it is in the futures market. Because spot FX is decentralized, it is impossible to ever know the last trade. What you see updating on the charts is strictly a bid/ask change and most charting packages will represent price as (bid + ask) / 2. Also, because you use volume in your attempt to asses breakouts, you will not have this available on the spot FX world.

 

Welcome to the dark side :haha:

 

With kind regards,

MK

Share this post


Link to post
Share on other sites

hey friend

 

i trade with oanda, and do my charting with metatrader 4 with a feed from alpari

 

i'm sure you've heard all kinds of horror stories about spot fx brokers.

 

oanda is way too big of a corporation to mess around

 

(except for news times) the spreads on the majors are 1 pip during the overlap of london and US trading sessions (1:00 EST to 11:00 EST is the best time)

 

my favorite thing about oanda is the fact that you can have any position size you want, 50:1 lev (if you like that stuff), and no miniumum acct balance

 

you can open an acocunt and deposit 25 cents and trade to see if you like it.

 

like i said my favorite thing is flexible position sizing. if your account is 100k and you are only down to risk 2k on a trade, it doesnt matter how far your stop needs to be for your particular setup, you can just adjust your # of units until the distance to your stop shows you 2k (the $ value from entry to your stop is displayed at the bottom of the window where you enter your market/limit order.) it also shows you the $ val to your TP

 

another huge selling point for oanda is flawless execution, the second i buy/sell i'm filled no worries.

 

a couple months ago i was holding a position over the weekend and my stop was pretty close and price gapped WAAAY up past my stop but they still honored it

 

my only complaint is their charting software is really weird. their platform is java based. its cool that you can trade anywhere there is an internet connection, but it takes a long time to get used to their bare bones charting software. that's why i downloaded MT4 and opened an unlimited demo with alpari (both are free). hope that helps

Share this post


Link to post
Share on other sites

to the guy who said something about breakouts in forex

 

i'm a breakout trader and i don't use volume. trade the london/us overlap and you're straight.

 

everyone that i know that has traded for decades and pays their bills trading is a breakout trader in the spot FX market none of this futures nonsense (lol)

 

and i'm sure there are people here who are scared of the tick volume that is available for spot FX here let me post a chart

Share this post


Link to post
Share on other sites

and i'm sure there are people here who are scared of the tick volume that is available for spot FX here let me post a chart

 

Tell us what this "tick volume" is ....when you post the chart.

 

Thanks.

Share this post


Link to post
Share on other sites

penny stocks are you joking. reported you equity!

attachment.php?attachmentid=21237&stc=1&d=1275421261

 

 

"Tick volume is defined as the number of price changes. Each time trading moves to a new price, the number of ticks by which the price has changed is added to the tick volume."

 

from http://www.ptti.com/html/help/tick_vol.htm

 

i dont really use the volume for much except for looking at stopping volume on the daily

 

but then my strategy is too simple to mess with abstract concepts like volume trend or s/r

tv.jpg.bf91fa20cd6c17d324b4ea65776f6748.jpg

Share this post


Link to post
Share on other sites

Thanks for the responses guys. I'm still searching around for brokers. I don't need volume while I'm trading, I just miss it because I hate using time based charts. I've been watching a few pairs for the last couple days and am trying to get into the groove of them.

Share this post


Link to post
Share on other sites
Thanks for the responses guys. I'm still searching around for brokers. I don't need volume while I'm trading, I just miss it because I hate using time based charts. I've been watching a few pairs for the last couple days and am trying to get into the groove of them.

 

you cant beat trends that last for years

 

thats why i trade breakouts into the trend, take half off at 1:1 and let it ride without looking at it for days. you can take some off here and there in whatever amount with oanda to smooth your equity curve

Share this post


Link to post
Share on other sites

For what it's worth, I trade currency futures every day. I also intend to trade the spot market and just opened an account with Oanda, which came highly recommended from an experienced trader friend of mine who only trades the spot market. I plan on using Tradestation charting to determine my trades though, since that's what I use for my futures trading. Since I'm daytrading the currency futures, I'll probably be swing trading the spot market. I figure the larger trades will give me a better chance of dodging my broker's interest of taking out my stops but also, will give me diversification.

Share this post


Link to post
Share on other sites

Weed, whether brokers do that or not (I've heard many horror stories whether real or just perceived to be real) I think you missed the point. In my view, since fx is not a centralized market, I think swing trading is a better approach. You also need to account for spread costs which will be a much smaller percentage of the overall trade profile with a swing trade than a day trade. I would prefer to daytrade currency futures. At least, that is what I am finding success in. That's just me, and that's what makes a market no? I do this, you do that? Whether a broker takes out my stop or not, is what it is. (Or isn't). I can gain greater control though with larger time frame trades vs smaller time frame trades. That's just logical. And yes, I am for real.

Share this post


Link to post
Share on other sites

little bit touchy my friend?

 

your broker doesn't care bout your stop. that doesnt mean that there isnt professional money interested in them though.

 

i swing trade that shit is my bread and butter, and is one of the common factors in long term success for the professional traders i know

 

try and relax friend!

Share this post


Link to post
Share on other sites

I'm quite relaxed Weed. Thanks for your concern. By the way, do you have any thoughts regarding FOMC day? Do you trade your normal plan or do you do something different? I'm must curious. I've done great on some markets in the past on FOMC days but I'm particularly interested on how currency traders handle Fed event sessions.

Share this post


Link to post
Share on other sites

As for broker, I personally use Oanda. Did venture to FXCM for a while but my overall experience is much better with Oanda. The ability to gear in with position sizing makes a world of difference. Pretty much the same feeling as Weed. I use Ninja charting with PFG data feed however

 

Due to the narrow spreads in comparison to many, I day trade through Oanda as well. Stop runs by brokers may have been the flavor of the day moons ago, now, different story. Dealing desks may take the opposite position but so what? I have never seen a massive discrepancy between Oanda charting prices and my Ninja feed.

 

While the cost may be higher in spot FX as opposed to futures, it's all the same to me. Cost of doing business. My spread cost is more than covered and being diversified in trading style (swing/day), helps to smooth the equity curve. You could say that day trading pays the bills and swing trading pays for the future.

 

I'm with Weed again on breakouts. You could sit and wait for a retrace that never comes in the immediate future. Sure, you can offset that by dropping to a lower time frame to grab the retrace but then you have to decide where you are getting in as price moves away from the main direction (ala picking bottom/top). 1-2-3 reversal? An indicator trigger? Another breakout?

 

Going astray from the topic. Hope this helped

Share this post


Link to post
Share on other sites
Some of us who trade futures are thinking of also looking into spot forex for various reasons (small position sizes, volatility, flexible trading hours etc).

 

However there seem to be a lot of horror stories surrounding spot fx and I'm a little tentative about just picking a broker out of thin air. I'm hoping some of you spot traders can chime in with some general tips for us futures guys.

 

My biggest question is what to look for in a broker? There are a million of them out there. Any other tips about trading spot that us futures traders wouldn't know are appreciated. :beer:

 

So strange you started this thread, for the last 3 weeks I have been looking into swinging spot fx, I was looking into the micro account that Thales daughter traded quite well to get a feel for the market. I look forward to more discussion on this.

Share this post


Link to post
Share on other sites
little bit touchy my friend?

 

your broker doesn't care bout your stop. that doesnt mean that there isnt professional money interested in them though.

 

i swing trade that shit is my bread and butter, and is one of the common factors in long term success for the professional traders i know

 

try and relax friend!

 

Hi Weed, Please can you explain this a bit more please?

 

To my understanding, if I have a position with a FX bucket shop, then they are my counter party. My stop sits with them, and them only as the price they publish to their customers (you and me) is based around what the real spot fx market is doing. In fact, my order never really sees the real FX market - it is just a bet with the FX bucket shop.

 

I say this because you can not place orders for any less than $500,000 in the real FX market. Even then, nobody would want to trade with you as minimum deals tend to be multi-million in the banking/real market.

 

Therefore, to my thinking, there is no 'professional money' to go after your stops, as such participants do not have accounts with FXCM, O&A etc. Even if they did, they would have nothing to gain as the FX broker is their counter party, not another customer. You're not trading on an exchange - it's decentralised and not that well regulated.

 

Given the business model in which a retail FX broker operates then, he can only derive income in one of two ways:

1/ Customer losses. He is relying on the statistic that most people depositing funds will blow it with in 6 months.

2/ Piggybacking successful traders who have been identified.

 

Scenario 1 is the more likely. If your business was scenario 2, you'd be better off posting a job ad.

 

What better way to create a customer loss than pinching stop-loss orders by quoting 1-3 ticks away from the market when near a TA level - where everyone places their stops? Besides, your counter party/broker knows your position, your account size, and where your orders are!!! He probably also has some BI software running as well to identify common behavioural patterns.

 

I look forward to your input - or anyone elses if I am wrong here.

 

Thanks,

 

Dooderino.

Share this post


Link to post
Share on other sites

Does anybody know if IB run stops like some other brokers. The reason I like them is that they charge a commission. That is the way they make money plus they are a Non Dealing Desk. Theoretically they should not be the counter party to your trade. I been using them for more than 2 years. I use stop limit orders to enter the market and sometimes they are almost a pip over the limit. I exit thru a stop and once in a while I get a fill that is more than 2 pips over my stop.

I am a scalper seeking few pips in high volatility markets. I successfully trades during the flash crash (really good day) with IB. I did not see any slippage over the usual that day and even during high news. One con about them is their report and keeping track about your trades and profits. It is probably the worst report out there.

I am interested in testing FXCM since it is the largest broker out there. I would like to hear from somebody that have day trade both. One thing I like from FXCM UK is that you can be both long/short in the same pair. This open a new set of trading strategies.

For me the cost is very important since I am scalping. Last year I had one month where I paid $5000 in commissions and I was only able to make few hundreds. Since then I change my strategies to look for a bigger profit channel. but If I could get half the cost I could exploit the smaller moves for a few thousands a day.

Another fact that intrigues me about the retail Forex is how the fills happen. The standard contact size is $100,000. So if you sent an order for $150,000 do they send $100,000 to the Intermarket and then fill $50,000 from their own market? Basically I would like to know if there is any advantage by trading multiples of the standard contract versus non-standard.

 

Moscu

Share this post


Link to post
Share on other sites
you cant beat trends that last for years

 

thats why i trade breakouts into the trend, take half off at 1:1 and let it ride without looking at it for days. you can take some off here and there in whatever amount with oanda to smooth your equity curve

 

For what it's worth, I trade currency futures every day. I also intend to trade the spot market and just opened an account with Oanda, which came highly recommended from an experienced trader friend of mine who only trades the spot market. I plan on using Tradestation charting to determine my trades though, since that's what I use for my futures trading. Since I'm daytrading the currency futures, I'll probably be swing trading the spot market. I figure the larger trades will give me a better chance of dodging my broker's interest of taking out my stops but also, will give me diversification.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Date: 8th April 2025.   Markets Rebound Cautiously as US-China Tariff Tensions Deepen     Global markets staged a tentative recovery on Tuesday following a wave of volatility sparked by escalating trade tensions between the United States and China. The Asia-Pacific region showed signs of stability after a chaotic start to the week—though some pockets remained under pressure. Taiwan’s Taiex dropped 4.4%, dragged lower by losses in tech heavyweight TSMC. The world’s largest chipmaker fell another 4% on Tuesday and has now slumped 13.5% since April 2, when US President Donald Trump first unveiled what he called ‘Liberation Day’ tariffs.   However, broader sentiment across the region turned more positive, with several markets rebounding sharply after Monday’s dramatic sell-offs. Japan’s Nikkei 225 surged over 6% in early trading, rebounding from an 18-month low. South Korea’s Kospi rose marginally, and Australia’s ASX 200 gained 1.9%, driven by strength in mining stocks. Hong Kong’s Hang Seng rose 1.6%, though still far from recovering from Monday’s 13.2% crash—its worst day since the 1997 Asian financial crisis. China’s Shanghai Composite added 0.9%.   In Europe, DAX and FTSE 100 are up more than 1% in opening trade. EU Commission President von der Leyen repeated yesterday that the EU had offered reciprocal zero tariffs on manufactured goods previously and continues to stand by that offer. Others are also trying again to talk to Trump to get some sort of agreement that limits the impact.   Much of the rally appeared to be driven by dip-buying, as well as hopes that the intensifying trade war could still be defused through negotiations.   China Strikes Back: ‘We Will Fight to the End’   Tensions reached a boiling point after Trump threatened to impose an additional 50% tariff on all Chinese imports unless Beijing rolled back its retaliatory measures by April 8. ‘If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow... the United States will impose additional tariffs on China of 50%,’ Trump declared on social media.   If implemented, the new tariffs would bring total US duties on Chinese goods to a staggering 124%, factoring in the existing 20%, the 34% recently announced, and the proposed 50%.   In response, China’s Ministry of Commerce issued a stern warning, stating: ‘The US threat to escalate tariffs is a mistake on top of a mistake... If the US insists on its own way, China will fight to the end.’ The ministry also called for equal and respectful dialogue, though signs of compromise on either side remain scarce.   Beijing acted quickly to contain a market fallout. State funds intervened to support equities, and the People’s Bank of China set the yuan fixing at its weakest level since September 2023 to boost export competitiveness. Additionally, five-year interest rate swaps in China fell to their lowest levels since 2020, indicating potential for further monetary easing.   Trump Talks Tough on EU Too   Trump’s hardline approach extended beyond China. Speaking at a press conference, he rejected the European Union’s offer to eliminate tariffs on cars and industrial goods, accusing the bloc of ‘being very bad to us.’ He insisted that Europe would need to source its energy from the US, claiming the US could ‘knock off $350 billion in one week.’   The EU, meanwhile, backed away from a proposed 50% retaliatory tariff on American whiskey, opting instead for 25% duties on selected US goods in response to Trump’s steel and aluminium tariffs.     Volatile Wall Street Adds to the Drama   Wall Street experienced wild swings on Monday as investors processed the rapidly evolving trade conflict. The S&P 500 briefly fell 4.7% before rebounding 3.4%, nearly erasing its losses in what could have been its biggest one-day jump in years—if it had held. The Dow Jones Industrial Average sank by as much as 1,700 points early in the day but later climbed nearly 900 points before closing 349 points lower, down 0.9%. The Nasdaq ended up 0.1%.   The brief rally was fueled by a false rumour that Trump was considering a 90-day pause on tariffs—rumours that the White House quickly labelled ‘fake news.’ The market's sharp reaction underscored how desperate investors are for any sign that tensions might ease.   Oil Markets in Focus: Goldman Sachs Revises Forecasts   Crude prices also reflected the uncertainty, with US crude briefly dipping below $60 per barrel for the first time since 2021. As of early Tuesday, Brent crude was trading at $64.72, while WTI hovered around $61.26.   Goldman Sachs, in a note dated April 7, lowered its average price forecasts for Brent and WTI through 2025 and 2026, citing mounting recession risks and the potential for higher-than-expected supply from OPEC+.       Under a base-case scenario where the US avoids a recession and tariffs are reduced significantly before the April 9 implementation date, Goldman sees Brent at $62 per barrel and WTI at $58 by December 2025. These figures fall further to $55 and $51, respectively, by the end of 2026. This outlook also assumes moderate output increases from eight OPEC+ countries, with incremental boosts of 130,000–140,000 barrels per day in June and July.   However, should the US slip into a typical recession and OPEC production aligns with the bank’s baseline assumptions, Brent could retreat to $58 by the end of this year and to $50 by December 2026.   In a more bearish scenario involving a global GDP slowdown and no change to OPEC+ output levels, Brent prices might fall to $54 by year-end and $45 by late 2026. The most extreme projection—based on a simultaneous economic downturn and a full reversal of OPEC+ production cuts—would see Brent plunge to below $40 per barrel by the end of 2026.   Goldman noted that oil prices could outperform forecasts significantly if there was a dramatic shift in tariff policy and a surprise in global demand recovery.   Cautious Optimism, But Warnings Persist   With both Washington and Beijing showing no signs of backing down, markets are likely to remain volatile in the days ahead. Investors now turn their attention to upcoming trade meetings and policy decisions, hoping for clarity in what has become one of the most unpredictable trading environments in recent years.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • CVNA Carvana stock watch, rebound to 166.56 support area at https://stockconsultant.com/?CVNA
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.