If I Go Broke Trying Then I Will die happy.
- #63
- Nov 14, 2006 9:15am Nov 14, 2006 9:15am
- | Membership Revoked | Joined Mar 2005 | 4,703 Posts
yeah, 10 pips. It held that way for several seconds at around 10:10 est.
Right about where I exited.
If I Go Broke Trying Then I Will die happy.
- #68
- Nov 14, 2006 10:05am Nov 14, 2006 10:05am
- Joined Mar 2006 | Status: THANK YOU MERLIN,TWEE and FF Team | 4,603 Posts
- #71
- Nov 14, 2006 10:50am Nov 14, 2006 10:50am
- | Joined Apr 2006 | Status: MB Trading | 2,112 Posts
Hi Guys -
Thought I would step in and explain a few things for everyone involved in the recent threads.
Our direct access system is made up of many, many banks that cannot hit each other through our system. One of the dangers of trading during news releases is that sometimes the banks are just as confused as anyone, trying to react to what is going on. This often leads to situations where some of the banks temporarily are bidding for a pair above a price where other banks are trying to offer a pair, creating a crossed quote. This is all happening EXTREMELY fast, and they move around in reaction to each other not just because of our system but as they monitor each other’s quotes. It is possible to place an order and hit either side of the market with a crossed quote. However, you have to recognize how fast these players are moving during this type of action. By the time you see it on the screen and get your order set and click the button, they could already be gone. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>
If your order gets to a bank while their price is at a certain bid or offer, even in a crossed market, you can get filled. But again, I think if you watch carefully, you will see that all of this happens so quickly that it can be extremely difficult to hit one bank in that scenario before they are already moving. One of the keys is to watch the Level 2 and see if it looks like just one bank with one quote is “out of whack” against the rest of the banks. If that is the case, it is certainly tough to expect to be able to place your order in time to hit them.
In short, the crossed-quote thing is very real. So is the speed with which the banks are reacting in the seconds right after news.
Hope this helps.
Thought I would step in and explain a few things for everyone involved in the recent threads.
Our direct access system is made up of many, many banks that cannot hit each other through our system. One of the dangers of trading during news releases is that sometimes the banks are just as confused as anyone, trying to react to what is going on. This often leads to situations where some of the banks temporarily are bidding for a pair above a price where other banks are trying to offer a pair, creating a crossed quote. This is all happening EXTREMELY fast, and they move around in reaction to each other not just because of our system but as they monitor each other’s quotes. It is possible to place an order and hit either side of the market with a crossed quote. However, you have to recognize how fast these players are moving during this type of action. By the time you see it on the screen and get your order set and click the button, they could already be gone. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>If your order gets to a bank while their price is at a certain bid or offer, even in a crossed market, you can get filled. But again, I think if you watch carefully, you will see that all of this happens so quickly that it can be extremely difficult to hit one bank in that scenario before they are already moving. One of the keys is to watch the Level 2 and see if it looks like just one bank with one quote is “out of whack” against the rest of the banks. If that is the case, it is certainly tough to expect to be able to place your order in time to hit them.
In short, the crossed-quote thing is very real. So is the speed with which the banks are reacting in the seconds right after news.
Hope this helps.
- #77
- Nov 14, 2006 12:36pm Nov 14, 2006 12:36pm
- | Joined Apr 2006 | Status: MB Trading | 2,112 Posts
Why doesnt EFX allow you to punch in a stop loss and profit target price with a market order like everyone else does? it makes the whole order placing deal much easier than having to mess with stop/limit orders posteriorly.
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>Here are a few suggested tips on placing orders, especially during news.
<o
></o>1. During news announcements or volatile times placing market orders is never a good idea, in my own personal opinion. I always suggest using what we call “Soft” Limit Orders.
<o
></o>Example: We all know a limit order basically means the following: Buy with this limit price, pay no higher (or Sell with this limit price, sell no lower).
<o
></o>In most cases, a limit is used to place an order to "Buy below the current market price or Sell above the current price." You are limited, waiting for those prices.
<o
></o>On news, I suggest using these orders to control your fill by thinking in the opposite manner.
<o
></o>Set a Limit to buy above the market or Sell below the market by as far as you are willing to get filled in a fast market. This way you set a range of where you would like to get filled.
<o
></o>Example: Current Market on the EUR: 1.2700, trader is waiting for news and wants to try to jump in for a scalp if the pair starts to head up. The trader doesn’t want to get filled higher than 1.2705, 5 pips above the current price (remember that if the news causes a huge spike instantaneously, a Market order opens you up to tons of slippage.
<o
></o>So, place the Buy Limit at 1.2705, trade goes in and starts trying to buy at 1.2700 if not filled by 1.2705, trade remains pending.
<o
></o>2. We do allow traders to place market orders with Stops and Limits. This order is Market + TTO. The front of the "+" is our entry to the entry, while the back of the "+" is our exit (stop/target/both). You can also use Limit + TTO orders to set all of the parameters in advance while controlling your max entry price, again saving you from the risks of Market orders.
<o
></o>3. For more information on our ordertypes, please visit.
<o
></o>http://efxgroup.com/efxgrouporderentry.pdf<o
></o>Thank you,
