Interbank Spot: "Bank Reversals" Make it a Fools Game??? | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Game of Fools 78 replies

Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk 46 replies

Dealing with "Invalid Price", "Requote", "Server Busy" in MT4 3 replies

Fools Game 9 replies

Interbank FX "off quotes" 26 replies

Interbank Spot: "Bank Reversals" Make it a Fools Game???

  • #21
  • Aug 11, 2008 10:45am Aug 11, 2008 10:45am
Apparently if your broker is good and he likes you, then he will call you up and discuss issue with you BEFORE deleting your trade in the system and leaving you with open position.

He then will usually give you 2 options:

1) Come up for the price difference between what you paid and what counterparty thinks you should have paid
2) bust trade and leave you with open position

You can decide.
  • #22
  • Aug 11, 2008 10:40pm Aug 11, 2008 10:40pm
Quoting sccz97
Say the you bought eur$ at 1.5233 and the bank thinks that the mkt was actually at 1.5240/41, they'll amended your trade up. As to what price, that's up to the bank and unless you're churning out commisiions for your broker, they are unlikley to argue your case against a bank. .
Banks are not always nice to traders! they get so much flow that they can pretty much do whatever they want. Remember there is no exchange and nobody to punish them. you would have to swing a pretty big line to show up on their radar.

I know some will not agree but i feel strongly that for the most part banks are essentially big dealing desks (not necissarily in a bad way) that are very good at hedging off risk and matching orders.
  • #23
  • Aug 13, 2008 2:01am Aug 13, 2008 2:01am
Quoting don.key
Apparently if your broker is good and he likes you, then he will call you up and discuss issue with you BEFORE deleting your trade in the system and leaving you with open position.

He then will usually give you 2 options:

1) Come up for the price difference between what you paid and what counterparty thinks you should have paid
2) bust trade and leave you with open position

You can decide.
I've been using cnx for the last 3 yrs and with an avg monthly vol of over 2 yards I tend to do a fair number of trades. I've had trades amended freq enough to just accept it as part of trading spot as the pro's far outweigh the cons. I have never had a trade busted and come into work the next day with an open position.

I think when this happens, the issue is no longer with cnx but with how professional your broker is. Even for price adjustments, who's to say the bank didnt adjust your buy lmt order from 45 to 50 and not the 55 your broker said (while pocketing the 5 ticks for himself). There's more than one link in the chain, you need to do your due diligence and make sure all links are solid, or at least know where the weakness are
  • #24
  • Aug 13, 2008 2:37am Aug 13, 2008 2:37am
Quoting sccz97
I've had trades amended freq enough to just accept it as part of trading spot as the pro's far outweigh the cons.
Why did you choose CNX over HSFXi? I know you mentioned depth on FXi being an issue in an earlier thread, but I don't think that's the case anymore (judging from the reviews of others, and my own experience on live CNX feeds vs the FXi demo feed). I've yet to hear of trades being amended/reversed on FXi.
  • #25
  • Aug 13, 2008 12:26pm Aug 13, 2008 12:26pm
Quoting Trader KGB
Why did you choose CNX over HSFXi? I know you mentioned depth on FXi being an issue in an earlier thread, but I don't think that's the case anymore (judging from the reviews of others, and my own experience on live CNX feeds vs the FXi demo feed). I've yet to hear of trades being amended/reversed on FXi.
an honest answer would be, I'm more comfortable with it. I'm sure if I used hsfxi enough I'd find some quirks with that. Having said that, the order matching there is more like that on futures exchanges and I've not heard of any orders being busted. The downside of this is that banks tend to post less volume in my experience. Also, at times liek the inflation report today, getting 20m out on cable was not a problem but as soon as the volatility increases significantly the liquidity on hsfx does tend to dry up. It's still better than other ecn's like lava though. Another note is that I trade via fix and cnx just seems more secure and has a wider range of orders that i make use of for my trading style
  • #26
  • Aug 13, 2008 2:39pm Aug 13, 2008 2:39pm
Quoting sccz97
an honest answer would be, I'm more comfortable with it. I'm sure if I used hsfxi enough I'd find some quirks with that. Having said that, the order matching there is more like that on futures exchanges and I've not heard of any orders being busted. The downside of this is that banks tend to post less volume in my experience. Also, at times liek the inflation report today, getting 20m out on cable was not a problem but as soon as the volatility increases significantly the liquidity on hsfx does tend to dry up. It's still better than other ecn's like lava though. Another note is that I trade via fix and cnx just seems more secure and has a wider range of orders that i make use of for my trading style
Interesting, thanks for sharing your insight. Are you still with ManFX in Chicago for CNX?
  • #27
  • Last Post: Aug 14, 2008 1:58am Aug 14, 2008 1:58am
Quoting Trader KGB
Interesting, thanks for sharing your insight. Are you still with ManFX in Chicago for CNX?
As with platforms, I believe you should have your funds split across diff brokers. IT doenst matter if you're using cnx on all as cnx is quite customisable so it will be diff depending on the broker you're with. Also, and much more importantly, you dont want all your funds to be at risk by placing them all at one broker, just like you would with your normal bank deposits. As of mid-march this year I withdrew all my funds from mf and have yet to put them back. If you have funds in a publicly traded broker like mf, you should take note when the stock price drops over 60% in the day and start withdrawing! Having said that, I'm sure mf are perfectly safe, but then again, they said that about refco as well
0 traders viewing now