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question from a newbie ....

  • Post #1
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  • First Post: Aug 8, 2005 6:31am Aug 8, 2005 6:31am
having spent my whole career trading equities, I have recently decided to look at forex as well.

from what i can find out so far, i am under the misapprehension that it is possible to trade fx on the equivalent of DMA in equity markets ..... i.e. i can go best bid or offer and if someone wants 2 sell or buy we would match.

i am told by my fx platform provider that this is not the case.

could someone please confirm whether or not this is the case

thank you
Quoting edcrane
having spent my whole career trading equities, I have recently decided to look at forex as well.

from what i can find out so far, i am under the misapprehension that it is possible to trade fx on the equivalent of DMA in equity markets ..... i.e. i can go best bid or offer and if someone wants 2 sell or buy we would match.

i am told by my fx platform provider that this is not the case.

could someone please confirm whether or not this is the case

thank you
That is correct. The forex dealing station is very simple. The MM quotes bid/ask prices. You enter and exit what you see on the screen if it suits you. That is it. Any matching that is done is not known to you. The mm decides when and how they match buyers and sellers or unload their trades on the IB market. If your trade sizes are over 10 million you may begin to have more options about how you enter and exit trades but you have to affect the existing liquidity (can often exceed 50 million a second) and represent really large spread profits to have any flexible interaction with the entity on the other side of your trade.

FT
thank you for such a detailed and concise reply. very helpful.
Quoting edcrane
thank you for such a detailed and concise reply. very helpful.
you can always count on fij. stick around the forum, it really will help your trading. jim
  • Post #5
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  • Last Post: Dec 29, 2005 11:21pm Dec 29, 2005 11:21pm
Quoting edcrane
having spent my whole career trading equities, I have recently decided to look at forex as well.

from what i can find out so far, i am under the misapprehension that it is possible to trade fx on the equivalent of DMA in equity markets ..... i.e. i can go best bid or offer and if someone wants 2 sell or buy we would match.

i am told by my fx platform provider that this is not the case.

could someone please confirm whether or not this is the case

thank you
With GFT ( www.gftforex.com ) you can tender a bid or offer price different from the market price and another trader may accept the offer. In such a situation GFT is still the counter party. It is called ITX and I believe it is unique in Forex to GFT.

Here is their description:

ITX (Inter Trader eXchange) allows traders to find better rates for deals with other traders. Through the ITX traders can broadcast bids and offers to every user logged on to the DealbookFX 2 system. Any user on the system will have the option to deal at the traders specified rate for the specified volume

If you contact GFT ask for Wes Newman ( email [email protected] ) He is very knowledgable, very friendly, and very responsive. The DealBook FX2 platform is incredibly robust and easy to use.

Hope that helps.

Dennis J
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