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Hi joe,
had to scratch around in recesses of the memory and pull out the
calculator but:
3 pips on dollarmark= 1 imm pip or $12.50
interbank spreads,size of $1m and no directional
show in dollar/mark approx 3 fx pips
suggest the spread will be 10-15 pips and if they
know your direction maybe 15-20 pips..resting orders
will not be filled unless you are killed
it is the kill, wide spreads and non-execution in these markets that
will screw you and unless like any commercial relationship you can
1)provide them with commercial size 1-10m
2)provide them with turnover
3)be creditworthy
4)screen watch to keep them honest
5)access other dealers to keep them honest
6)access quotes from interbank brokers to keep them honest
7)multiclear and match forward positions from bank to bank to keep
them honest
8)match all business to a single forward date say six weeks out and
check foward rates to keep them honest
you only get in a position to do nos 4-8 when you do size, establish a
close relationship with them etc..
i don't wish to sound too cynical here but it is true
regards
sam
---Joe Balsamo <jbalsamo@xxxxxxxxxxx> wrote:
>
> Guys,
>
> I was a bit bored lastnight (Padres had the night off :/) so I was
> poking around various websites (again, thanks to Mark Brown, that
> 'investorama' site has quite a bit of depth to it.)
>
> Anyway, I found a number of Forex trading sites, one which actually
> allows individual, Internet based traders to trade Forex for ZERO
> commission. All you have to do is maintain a minimum account of
$10000
> (which seems like chickenfeed for Forex trading.)
>
> Any comments on this? I'm a stock daytrader, so other than what I've
> read in "Market Wizards" and the bits on this list, I know next to
> nothing about Forex trading. Looks like it might be interesting.
Trades
> 24 hours a day, one can trade using a Java based trading system and
pay
> no commissions. Sounds good to me! Obviously, with 100:1 leverage,
one
> could get absolutely killed if not very careful, but I'm more
interested
> in learning if the commisionless trading is instant death to the
serious
> trader. Afterall, I know how much one can really lose from the market
> makers in super-cheap web-based NASDAQ trading vs. a true SOES
setup, so
> the cheapest isn't always best.
>
> Oh, just so I'm totally on topic...anyone have a good Forex trading
> system in either TradeStation or SuperCharts? ;)
>
> Best Regards,
>
> Joe Balsamo
>
>
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