Cable has become quite popular... | Forex Factory

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Cable has become quite popular...

  • #1
  • First Post: Oct 2, 2006 1:05pm Oct 2, 2006 1:05pm
It seems the GBP/USD pair has grown in popularity quite a bit in the past year, especially the past 6 months. With more people trading this pair, are we likely to see more or less movement and volatility in the future?
  • #2
  • Oct 2, 2006 1:30pm Oct 2, 2006 1:30pm
I thought that Cable had always been very popular, maybe the most popular of all. Many traders I know trade only the Cable. And that's been for longer than the last 6 months.
Don Life is expensive, but includes a free trip around the sun.
  • #3
  • Oct 2, 2006 1:44pm Oct 2, 2006 1:44pm
Quoting SisterCurare
It seems the GBP/USD pair has grown in popularity quite a bit in the past year, especially the past 6 months. With more people trading this pair, are we likely to see more or less movement and volatility in the future?
I think this is a great question, really.

The EUR/USD has taken over as the most popular pair to trade and I believe the GBP/USD maybe the second most. Anyone have any volume figures for these pairs? I know, traditionally, charts avoid volume here, but I know some signal providers offer the volume component.

I think the answer to volatility will be answered primarily by the types of players involved. I would venture to say that as the number and size of the players increase, the LESS volatile a currency will get. I think we see that phenomenon in stocks a lot. With that said, volatility is relative the price, so the daily PIP range may shrink, but probably not drastically (like losing 1/3rd of the pip range.
  • #4
  • Oct 2, 2006 3:18pm Oct 2, 2006 3:18pm
Unless spreads come down a lot, fortunately, we probably won't see Cable ruined like the Euro has been by all the scalping and subsequent lack of movement.

The Euro serves no purpose for traders unless you're scalping or carrying... at least IMO... of course, I'm a trend trader -- what do I know.
Mr. Trend
  • #5
  • Oct 2, 2006 6:57pm Oct 2, 2006 6:57pm
What exactly leads you to think Cable has grown in popularity? Just curious.
  • #6
  • Oct 3, 2006 8:21am Oct 3, 2006 8:21am
I've just noticed open interest for cable on COT has been reaching all time highs. Also, it just seems that whenever someone introduces a new system, they use cable to demonstrate entries, exits, and profit potential. The movement in this pair since September has been phenominal. I was just curious. I may need to adjust my strategy at some point in the future.
  • #7
  • Oct 3, 2006 8:37am Oct 3, 2006 8:37am
I started trading USD/JPY at my first stage of forex. After sometime, now, I only trade GBP/USD. I only view Cable's chart from 5mins all the way to daily chart. Other then that, not interested. GBP/USD is the most predictable and easier for discussion because most of use here know more about GBP/USD rather then USD/CHF or USD/JPY or what ever. Right?

Well im still a newbie in this forex market so..that is just my 2 mini lots.
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  • #8
  • Oct 3, 2006 8:40am Oct 3, 2006 8:40am
Cable has always been my favorite. I understand this pair better than any other pairs available, including Euro. I think cable gains popular because of its volatilities which have an average slightly above 100 pips/day.
"Even the word impossible says that I M possible"
  • #9
  • Edited 10:14am Oct 3, 2006 9:03am | Edited 10:14am
Cable's popularity has certainly been around longer than 6 months, in fact it has been around for years and years and years, London was considered the heart of FX (whether it still is? .. who knows) .. gee cable is named "cable" because the early transactions were done by sub-oceanic cable. It's volatility is higher in terms of pips, and hence to demonstrate a system that needs peaks an valleys, visually it is one of the best to demonstrate. Also it sounds better if you can say "see, selling there sent it down 243 pips" .. rather than perhaps 150 pips on EUR.

Something missed by new traders though is that while the amount of pip movement is greater, the value per pip is considerably lower than something like the EURUSD, so it kind of balances out in a way, add that to the usual extra pip or two of spread and in the long run I think it is a much of a muchness which is better to trade between the EUR and GBP, personally I trade the EUR with a 2 pip spread instead of the GBP with a 4-5 pip spread by that is just me. Also it makes calculating projected profit and loss much with whole dollar amounts.
You can quit and they won't care, but you will always know.
  • #10
  • Oct 3, 2006 9:07am Oct 3, 2006 9:07am
Quoting Akuma99
Cable's popularity has certainly been around longer than 6 months, in fact it has been around for years and years and years, London was considered the heart of FX (whether it still is? .. who knows) .. gee cable is named "cable" because the early transactions were done via by sub-ocean cable. Volatility is higher in terms of pips, and hence to demonstrate a system that needs peaks an valleys, visually it is one of the best to demonstrate. Also it sounds better if you can say "see, selling there sent it down 243 pips" .. rather than perhaps 150 pips on EUR.

Something missed by new traders though is that while the amount of pip movement is greater, the value per pip is considerably lower than something like the EURUSD, so it kind of balances out in a way, add that to the usual extra pip or two of spread and in the long run I think it is a much of a muchness which is better to trade between the EUR and GBP, personally I trade the EUR with a 2 pip spread instead of the GBP with a 4-5 pip spread by that is just me. Also it makes calculating projected profit and loss much with whole dollar amounts.

nice point master akuma ... ^^
  • #11
  • Oct 3, 2006 9:27am Oct 3, 2006 9:27am
Quoting Akuma99
...instead of the GBP with a 4-5 pip spread by that is just me.
Sheesh dude, who is your broker? I pay 2.3-2.5 pips during London and US hours...
Mr. Trend
  • #12
  • Last Post: Oct 3, 2006 10:17am Oct 3, 2006 10:17am
Quote
Sheesh dude, who is your broker? I pay 2.3-2.5 pips during London and US hours...

Just an average MrTrend that's all .. and judging by your spread you are with Oanda which are one of the few who do spreads the way they do. I have 3 brokers actually, one offers it at 3 pips, other two at 4 pip, FXCM who I used to be with I think had it at 5 ... doesn't worry me too much as I don't trade it too often
You can quit and they won't care, but you will always know.
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