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oanda & scalping

  • Post #1
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  • First Post: Aug 23, 2010 11:35am Aug 23, 2010 11:35am
Did you know anything about oanda scalping policy or did you experienced scalping with oanda?

They said one thing matter is latency trading so what is latency trading anyway?
You can scalp all you want there.

Latency trading is where you look at a faster price feed (a bank or ECN) and take trades off of their slower price feed. Can't really do that anymore because they have fixed their own price feed now.
It's fine until you start making 3/4/500 pips a day trading upwards of 2 or 3 lots. They won't shut you down though, you'll just start experiencing major slippage (as they hedge probably) which kinda takes some of the fun out of it!

That was the situation a couple of years ago anyway, things may have changed I don't know.....


(Hey Price, how's it going?)
I'm testing several scalping strategies with them since a month, opening and closing trades even within seconds, but normally I hold the trades for about 10 minutes, and I've never had any problem, execution is instantaneous, when the price is moving fast I always get slippage, but for and against me, not only against me like in other MT4 brokers (virtual dealer plugin?).

I use the one click tool to scalp, when I want to buy I click buy and when I want to close it I click sell with the same amount of lots, and vice versa with the sells, I can also close a buy trade and open a sell one at the same instant, just putting more lots in the sell box before clicking it, you can't do this with a broker with hedging for example.

I'm happy with them (for the moment), the only thing I don't like of Oanda is that they wide 10 times the spread during few minutes during new releases, but in the other hand you can predict exactly when they are going to wide the spread, I have not found for the moment any other broker in which you can always predict the evolution of the spread.
guys, thanks for your replys

OANDA Live Chat Log:

OANDA: Scalping has many definitions. If you're referring to no limits on how much profit you can take on a trade, or how long a trade can be opened, OANDA does not put restrictions on this.
Kursat Kumbaraci: ok so i can close trade on +3 pips or -3 pips like in 2 minutes and oanda accept this right?
OANDA: Yes.
I believe the moment Oanda starts losing substantial money from your order flow , they will kick you out
Quoting Cocoflanel
I believe the moment Oanda starts losing substantial money from your order flow , they will kick you out
I hope that's true, I'm sure Oanda clients want to see Oanda remain solvent! But seeing as they manage exposure that really shouldn't be an issue unless, like the OP mentioned, someone tries to exploit their platform/price feed (ie latency).
Quoting pipmutt
I hope that's true, I'm sure Oanda clients want to see Oanda remain solvent! But seeing as they manage exposure that really shouldn't be an issue unless, like the OP mentioned, someone tries to exploit their platform/price feed (ie latency).
While Oanda remains the biggest retail forex broker of the world, I don't care about them, they have 170 million dollars in net capital versus 100 million dollars of the next bigger retail broker (FXCM), and they have 500 billion in trading volume with only 1:50 leverage, much more than the 2nd broker in trading volume, FXCM too, with 365 billion and 1:400 leverage in UK and 1:100 in US... Oanda is too big to fail
Quoting Trad3r

...they have 170 million dollars in net capital...
And I'm sure they want to keep it!

My post needs to be taken in context, it was in reply to a comment Cocoflanel made.

Anyway, $170m wouldn't last five minutes if they left themselves open to traders taking advantage of a flaw in their platform or latency in their streaming quotes, can you imagine!
I like OANDA's IPhone application. Even better than thinkorswim's .
Quoting Trad3r
they have 500 billion in trading volume with only 1:50 leverage

500 billion/monthly ?

Where did you get that number ?
You can be in a trade for as long or as short a time as you want with Oanda.
You can trade for 3 seconds or even 1 second if you wish (though if you are only in for one second all you will be doing is paying them the spread).
The only limitation on the trading time is the execution time which can vary depending on your internet connection speed, and all the various interconnecting compters relaying messages between you and the Oanda Servers. Oanda is the best broker, consider yourself lucky that you found them.
Hi! I am learning forex.

My cousin introduced me Oanda because it has a pip spread of 0.9 pips.

But when i read forums, i see people saying get a ECN broker, because they wont trade against you.

The question is:

1. Will Oanda trade against us?
2. If ECN earn on commission, why do i see some ECN broker still have 2 pips spread?

Thanks!
I just read their disclosure after opening an account, they will trade against you.
Quoting Cocoflanel
500 billion/monthly ?

Where did you get that number ?
http://forexmagnates.com/monthly-ret...traded-volume/
Quoting Cooly
I just read their disclosure after opening an account, they will trade against you.
Hi!

Thanks for the reply.

May i know where did you get the disclosure? and which specific statement?

Sorry for the trouble. I've got a lot to learn...

Thanks!
  • Post #17
  • Quote
  • Edited 2:35am Aug 29, 2010 2:22am | Edited 2:35am
Quoting ChaoSaintS
Hi!

Thanks for the reply.

May i know where did you get the disclosure? and which specific statement?

Sorry for the trouble. I've got a lot to learn...

Thanks!
https://fxglobaltransfer.oanda.com/s...disclosure.pdf

When you enter into a foreign currency contract with OANDA, you will be entering into a privately
negotiated contract with OANDA, as principal. OANDA may, in turn, enter into “back-to-back”
transactions with others. OANDA includes its mark-up in the price it quotes to you. These foreign currency
contracts are not executed on an exchange and are not cleared on a central clearing organization. They
obligations of OANDA and you will not be afforded the regulatory and financial protections offered by
exchange-traded contracts. Both you and OANDA are obliged to perform their respective obligations under
each transaction in accordance with its terms. The terms of each foreign currency contract are set out in
OANDA’s Customer Agreement, which applies to every transaction you enter into with OANDA...............Your trading account is not insured under any state or Federal insurance program or by any other entity...............In the event OANDA should become insolvent or file for protection under the bankruptcy laws, it is possible that you would lose the entire amount in your Margin Account..........
Quoting futures
https://fxglobaltransfer.oanda.com/s...disclosure.pdf

When you enter into a foreign currency contract with OANDA, you will be entering into a privately
negotiated contract with OANDA, as principal. OANDA may, in turn, enter into “back-to-back”
transactions with others. OANDA includes its mark-up in the price it quotes to you. These foreign currency
contracts are not executed on an exchange and are not cleared on a central clearing organization. They
obligations of OANDA and you...

All forex brokers have similar risk statements, also, forex brokers are like banks: if a bank go to bankruptcy you may lose all your funds... But the bigger the broker / bank is, the less probabilities they have to go bankruptcy.
Quoting Trad3r
http://forexmagnates.com/monthly-ret...traded-volume/
I think there's a disclosure that's more blatant than that. I cannot find it right now.

Why is anyone worried about this? Shouldn't people be focusing on their methodology?
Quoting Trad3r

if a bank go to bankruptcy you may lose all your funds... But the bigger the broker / bank is, the less probabilities they have to go bankruptcy.
What's the FDIC in the US for then, or the FSCS in UK?
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