EUR Slippage

[Blithe]

Hi All,

Yes, NFA figures recently have been all over the place, and its a very hard number to estimate for the economists.... hence the 100k+ difference from the market that we have almost come to expect now. Guaranteed entry levels are a great way to trade for those willing to take the risk (as long as you understand the risk!), and I don't really feel for the brokers, since most of the professionals overbuy/oversell on the release of such a number, expecting huge customer orders later on....

Anyway, if they have stopped guaranteeing fills, I guess a legit way of trading is to buy overnight straddles, as long as you anticipate at least a big figure move in the likes of the EUR... anyone knows of a site that allows you to take positions on o/n options, particularly spreadbets?

GJ, great that you made money on the OZ, personally prefer cable from a spreadbetting point of view, since I get same spreads in GBP and AUD and GBP moves around a lot more. Futures shouldn't make a difference, I guess..... anyway, doesn't matter where you made money, as long as U made it - Well Done!

Good Luck Everyone
Blithe

 

[JTrader]

GJ -
The problem is that we're in a bit of a transition phase as far as I can see. Bank platforms are grabbing more and more market share from the 2 main electronic interbank systems (just as they in turn did from the voice brokers 10 years ago), but these bank platforms aren't yet making their data feeds widely enough available for downstream players to build them into their pricing algorithms, so we're caught in a sort of vicious circle where the goonier the action on the 'toys' gets, the more people are going to migrate to the bank platforms. And the worse this is going to make the base feed from which all these streaming rates are taken.

Thanks GJ

I presume that the 2 main electronic interbank system that you refer to are EBS & Reuters?

What are the Bank platforms that you refer to?

and where do ECN's - or the services like hotspotfx fit into the equation?

Many thanks

jtrader.

 

[JTrader]

EBS, big bank own platforms, smaller banks & ECN's

Thanks GJ - you certainly seem to know your forex !

I think am now increasing my understanding of the forex food chain :cheesy:. So the big banks trade on EBS or Reuters. The big banks now have their own platforms that the smaller banks can trade on - and the prices offered by the big banks to the smaller banks is more or less based on EBS or Reuters - as are also, the prices offered by retail spot forex brokers?

And do ECN's provide liquidity from the next level down from EBS or Reuters (Premier League)-by operating on one of (or perhaps several of) the bigger banks own individual platforms (Division one) - that enable the small banks to take part?

Also, what do the bigger banks gain from offering their own platform? if they just pass the prices that they are able to trade through EBS or Reuters on to the smaller banks - would participants on that platform have to pay a fee for access?

Where do the retail spot forex brokers get liquidity from? - would they mostly operate on EBS or Reuters platforms, or would they operate at the next level down - on one of the big banks own individual platforms?

it seems to me that the interbank forex market may benefit from having one centralized pricing source (as boxing weight divisions may benefit from having one World Championship title perhaps :cheesy: ) as opposed to the several tiers that seem to exist at present? in having one cohesive price. Is this possible, or is the several levels of tiers system necessary due to the different size of the institutions taking part? What do you think?

Any information greatly appreciated

Thanks again

jtrader.

 

[JTrader]

GJ -
ECN's are a tricky one. Ultimately some will die out and some will build market share. We're now starting to see ECN's trying to aggregate all the liquidity from the major bank platforms. If this happens, it's almost full circle, but without EBS and Reuters.

And I didn't even mention white labelling and prime brokerage yet.

Hi GJ and thanks again.

If you have a spare minute please could you briefly provide an insight into what are white labelling and prime brokerage?

Many thanks

jtrader.

 

[donaldduke]

I only got 5 pip slippage on my EUR buy stop after Non Farms today.
Lot better than the 32 slippage i got last month..

 

[minx]

I had 12 tick slippage in the bund, and my stop was 13 ticks away from the market right before the figure came out, yikes