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I was hoping with our FX traders that could provide some links to useful FX sites so I am not spending this long weekend all over the place.
I just need some FX basics and good informative sites to have in my bookmarks.
Some questions that come to mind:
1) What are the major pairs to look at?
2) What is each pip worth?
3) Exactly how worried should I be about placing money on deposit with a firm?
4) How about leverage? I know there's a ton available, but I'm not interested in being leveraged to the tilt. And anything else you can suggest.
Thanks in advance! |
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Brownsfan:
A. EUR/USD is the Flavor of the day currency- every noob and their brother is riding the rocket.
GBP/USD- Our old soul and my personal favorite
USD/CHF- The inverse Euro
USD/CAD- I'm not even going here!
USD/JPY- Get your feet wet with EUR/GBP/CHF first!
Each currency pair has its own personality (took me months to figure this out)
1. Euro- is our resident toddler, exploring every day but continually growing for the most part.
2. GBP is the grandfather, he has had his wild days and is a bit more tame- but with enough movement to keep the party going and plenty of opportunity to make pips!
3. CHF- Pretty much the Euro twin (in inverse)
4. CAD and JPY- Both these currencies are the resident "Wild Teenagers" They whip and dip on a whim, they give you 50 pips and then steal it back before you can say "YEA.... Oh no!"
B. Each Pip is worth $10 on a 1.00 lot on the GBP, EURO and CHF, somewhere in the $9.90 range for the CAD and JPY.
C. Your best bet is to trade on the Globex. Any of the "bucket shops" even the big boys- you are trying to trade against their "dealing desk" They will tell you that you are "out in the market" but in essence- you are buying and selling against their other clients. Do well? You can and will get banned- not outright, but you'll see crap like bad data feeds, lagging, charts that don't update or "outages" Think it isn't possible? I was banned from the same brokers "demo program" TWICE! I was not a customer they wanted!
The BIGGEST reason to trade on the Globex is the following- if you get into a "bucketshop" and they go bankrupt- if you have a $100,000 account- you stand in line in bankruptcy court behind their landlord, or any other creditor. You ARE NOT protected with YOUR money if they go belly up! You say "but wait isn't the NFA overseeing them" Yup. But the spot FX market is the wild west of the trading landscape. Full of cowboys and thieves!
In The Globex you are trading out in the actual market with the rest of the world (not a brokers client list) and they are regulated by the CME, your funds are safe!
This site will give you the scare of your life and verify everything I stated above:
nondealingdesk.com
D. Bucket Shops will allow you to leverage to the hilt! You'll see everything from 100:1 to 400:1.
As you are no doubt a seasoned trader- you know darn well the basics of money management and protecting your capital to "live to trade another day" so I won't expound on this one at all.
Sledge