...Not!
There are many claiming what great opportunities this market presents--what a blessing the volatility is. (Interestingly, these are the folks selling services on FF). Of course they would never advise anybody to stay on the sidelines and wait it out...
TODAY'S FX MARKET:
1. Widening spreads on ECNs and Re-quotes on DDs. This cuts into profits, makes placing limit orders harder and gets you stopped out more easily (and makes trading in general a bitch)
2. Ranges with no definite long term trend
3. Tremendous (unprecedented) volatility making MM more difficult due to the fact that stops have to be widened (therefore increasing risks)
4. Any rumor can move the markets a few 100 pips in minutes. Event risk is always very high.
5. Finally, LIBOR rates are of the mark, making predictable swap income almost impossible.
All this points to a very risky and abnormal market.
There are many claiming what great opportunities this market presents--what a blessing the volatility is. (Interestingly, these are the folks selling services on FF). Of course they would never advise anybody to stay on the sidelines and wait it out...
TODAY'S FX MARKET:
1. Widening spreads on ECNs and Re-quotes on DDs. This cuts into profits, makes placing limit orders harder and gets you stopped out more easily (and makes trading in general a bitch)
2. Ranges with no definite long term trend
3. Tremendous (unprecedented) volatility making MM more difficult due to the fact that stops have to be widened (therefore increasing risks)
4. Any rumor can move the markets a few 100 pips in minutes. Event risk is always very high.
5. Finally, LIBOR rates are of the mark, making predictable swap income almost impossible.
All this points to a very risky and abnormal market.