Quick FOREX questions from a beginner..

[trendspotter]

I currently trade FTSE futures on IB using Sierra charts and am considering trying Forex. Before I go forward I would like to look at the charts to see if they are as boringly range bound as FTSE Futures!:

1. What are the IB/Sierra codes for say EUD/USD and GBP/USD for the current series?

2 When, if ever do Forex futures expire? Do traders trade the spot prices or mainly the futures?

3 Can they be traded 24 hours or must you close out at a certain time if you only day trade?

4 What is the value of a pip?

5 Is there any T/A system which works better for FOREX than the usual ema's MACD RSI?

I'd be very grateful for any responses/advice. Thanks in advance.

 

[s-a]

1. What are the IB/Sierra codes for say EUD/USD and GBP/USD for the current series?

I don't know what IB/Sierra uses but maybe something similar to TradeStation which is EURUSD, GBPUSD. There is no such thing as a "current series" in FX.

2 When, if ever do Forex futures expire? Do traders trade the spot prices or mainly the futures?

In FX they rollover your positions automatically for you ever day at which time interest differentials are applied to your position. FX is the biggest market around AFAIK.

3 Can they be traded 24 hours or must you close out at a certain time if you only day trade?

True FX is 24/7 however most retail brokers do not trade after USA close and reopen again at NZ open. This seems quite arbitrary to me because most base their times session times on Eastern USA.. For example with TradeStation they open on Sunday 1700 Eastern and close Friday 1700 Eastern

4 What is the value of a pip?

For a full-size unit, a pip typically equates to $10. However this will not be true across all pairs. The value per pip will fluctuate as their respective currencies fluctuate, this happens on pairs like USD/JPY, USD/CAD and of course crossrates.

5 Is there any T/A system which works better for FOREX than the usual ema's MACD RSI?

All depends on ones psychological makeup. FX trends very nicely for long periods.

HG

 

[rog1111]

For currency futures :

1. IB symbols are GBP & EUR. For a quick look at charts, use the IB interactive charts, basic, but useable.

2. There are 4 contracts per year, March, June, Sept, Dec. Current nearby is March 05

3. Globex shuts for an hour each day & over weekends. You don't have to close positions, but you can't close or get stopped out during shutdown, and overnight margin requirements are double the day margin. Check the CME.com/Globex site for more details

4. GBP $6.25, EUR $12.50, E7 (mini Euro) $6.25

5. Depends what you mean by better ! For alternatives, you might like to take a look at the many posts on this forum on the "Spot on" breakout systems (do a search for spot on), some of which have worked well in the last 2 years.

GBP spreads can vary, and liquidity can be a little thin. Also both EUR and GBP can move very fast indeed, so you have to be careful. Normal IB stop orders are triggered by trade prices, so sometimes bid & ask can move past your stop with no trades, increasing slippage when execution finally occurs, if you're not watching. However, you can use stop limit orders to try and pin down price, which are native to Globex.

Good luck !

rog1111

I currently trade FTSE futures on IB using Sierra charts and am considering trying Forex. Before I go forward I would like to look at the charts to see if they are as boringly range bound as FTSE Futures!:

1. What are the IB/Sierra codes for say EUD/USD and GBP/USD for the current series?

2 When, if ever do Forex futures expire? Do traders trade the spot prices or mainly the futures?

3 Can they be traded 24 hours or must you close out at a certain time if you only day trade?

4 What is the value of a pip?

5 Is there any T/A system which works better for FOREX than the usual ema's MACD RSI?

I'd be very grateful for any responses/advice. Thanks in advance.

 

[trendspotter]

Many thanks for your replies. I've found the symbol: GBP Globex Mar05 Futures 6BH5 on IB which looks about right but what is the value of 1 contract?

 

[s-a]

rog111 clearly posts it above, also you can find out contract specifications at www.cme.com under products. I had thought your question was regarding forex, not futures. Sorry for the confusion.

HG

 

[josbarr]

Greater leverage available up to 400:1
True Hedging capability allows full hedging capabilities, which is the ability to take a position opposite to one currently open without incurring additional margin requirements. This feature acts as an insurance policy for times of uncertainty; it allows the trader the ability to hedge positions until the market direction becomes clearer.
to their risk parameters.

Free price feed.

 

[s-a]

Greater leverage available up to 400:1
True Hedging capability allows full hedging capabilities, which is the ability to take a position opposite to one currently open without incurring additional margin requirements. This feature acts as an insurance policy for times of uncertainty; it allows the trader the ability to hedge positions until the market direction becomes clearer.
to their risk parameters.

Free price feed.

Hi josbarr,

Not many brokers support true hedging. Do you have any recommendations? This is something I have requested from my broker on several occassions.

HG