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.

DaKine

6e Slippage

Recommended Posts

I've been watching the Oracle news trading room recently. They have people trading news releases using futures, but most have spot FX accounts. They reckon spot FX spread widening 5-10 pips on major news releases is workable, but some of the reports from the spot FX account holders are scary - dealing desks holding their 'market' order back to enter them 30 seconds later at the extreme of a spike, then slipping them again when they exit that, spreads widening to 30 pips, and all kinds of 'no we won't let you trade news' shennanigans from requotes to refusal to accept entry orders at news times. Many of the traders in that room have entries open on multiple spot FX accounts simultaneously just so they get a fill from somebody.

 

I'm interested in finding out more about news trading the futures, because if the liquidity is OK, at least it gets the wild card of the dealing desk out of the equation. Watching CME FX futures time & sales at news times, it seems like the spread widens nothing like as much as spot FX broker quotes - of course, that's OK only if you get a fill. Does liquidity dry up at news times on the major CME FX full futures (like 6E, 6B etc), or is it OK?

 

Max

Share this post


Link to post
Share on other sites

I'll let some others hopefully answer since I'm not a big fan of trading right at the news announcement time or just after for the reasons you describe.

 

However, years ago the forex dealing desks figured out how to "break" the news trade strategies -- used to be you were always guaranteed a fill at your stop price so people would simply bracket a buy and a sell, take the first to go and have an incredibly effective strategy - until the forex brokers figured it out and basically disabled it. The fact is you're dealing with a desk and trades that know what people try to do around news and can manipulate things.

 

I believe you'll find less of that with the futures -- though clearly it can leapfrog prices as well but you benefit from one, centralized datafeed and stream of trades -- instead of forex that really is at the discretion of each individual broker.

 

MMS

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

    • 📁 Population in 2100, as projected by UN Population Division.   🇮🇳 India: 1,533 million 🇨🇳 China: 771 million 🇳🇬 Nigeria: 546 million 🇵🇰 Pakistan: 487 million 🇨🇩 Congo: 431 million 🇺🇸 US: 394 million 🇪🇹 Ethiopia: 323 million 🇮🇩 Indonesia: 297 million 🇹🇿 Tanzania: 244 million 🇪🇬 Egypt: 205 million 🇧🇷 Brazil: 185 million 🇵🇭 Philippines: 180 million 🇧🇩 Bangladesh: 177 million 🇳🇪 Niger: 166 million 🇸🇩 Sudan: 142 million 🇦🇴 Angola: 133 million 🇺🇬 Uganda: 132 million 🇲🇽 Mexico: 116 million 🇰🇪 Kenya: 113 million 🇷🇺 Russia: 112 million 🇮🇶 Iraq: 111 million 🇦🇫 Afghanistan: 110 million   @FinancialWorldUpdates Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • “If the West finds itself falling behind in AI, it won’t be due to a lack of technological prowess or resources. It won’t be because we weren’t smart enough or didn’t move fast enough. It will be because of something many of our Eastern counterparts don’t share with us: fear of AI.   The root of the West's fear of AI can no doubt be traced back to decades of Hollywood movies and books that have consistently depicted AI as a threat to humanity. From the iconic "Terminator" franchise to the more recent "Ex Machina," we have been conditioned to view AI as an adversary, a force that will ultimately turn against us.   In contrast, Eastern cultures have a WAY different attitude towards AI. As UN AI Advisor Neil Sahota points out, "In Eastern culture, movies, and books, they've always seen AI and robots as helpers and assistants, as a tool to be used to further the benefit of humans."   This positive outlook on AI has allowed countries like Japan, South Korea, and China to forge ahead with AI development, including in areas like healthcare, where AI is being used to improve the quality of services.   The West's fear of AI is not only shaping public opinion but also influencing policy decisions and regulatory frameworks. The European Union, for example, recently introduced AI legislation prioritizing heavy-handed protection over supporting innovation.   While such measures might be well-intentioned, they risk stifling AI development and innovation, making it harder for Western companies and researchers to compete.   Among the nations leading common-sense AI regulation, one stands out for now: Singapore.” – Chris C Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • $NFLX Netflix stock hold at 556.59 support or breakdown?  https://stockconsultant.com/?NFLX
    • $RDNT Radnet stock flat top breakout watch, https://stockconsultant.com/?RDNT
    • $GNK Genco Shipping stock narrow range breakout watch, also see $GOGL https://stockconsultant.com/?GNK
×
×
  • Create New...

Important Information

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