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Why not a central Forex exchange?

  • #21
  • Sep 26, 2008 9:34am Sep 26, 2008 9:34am
Quoting agisthos
Okay you are right, it was an unfair stereotype.

I am thinking of pairs such as GBP/JPY and GBP/CHF which I like to trade. They consistantly have a spread of 7-10 pips on either ECN or dealing desk. Useless for scalping. If there was to be mutiple ECN's adding to a larger liquidity pool im sure this spread would drop, and on other pairs as well.

When I log into my futures account I can see the e-mini S&P bid/ask barely 1-2 ticks apart. I can see trades of 400 contracts at a time and they get filled.

Yet FOREX, which supposedly has WAY more liquidity than futures, has wide ECN spreads on almost every pair except EUR/USD. Despite all the talk, this is a sure sign of either low liquidity or ECN spread manipulation (which supposedly does not happen).
what ECN are you using where you see those kind of spreads?
  • #22
  • Sep 27, 2008 7:57am Sep 27, 2008 7:57am
Quoting agisthos
Okay you are right, it was an unfair stereotype.


Yet FOREX, which supposedly has WAY more liquidity than futures, has wide ECN spreads on almost every pair except EUR/USD. Despite all the talk, this is a sure sign of either low liquidity or ECN spread manipulation (which supposedly does not happen).

It has been a year now trading forex and still can not understand why people care about 3-4 pips more in the spread!!
Do you trade to make 2-5 pips that these 3-4 pips more from the spread will make difference?
When you trade, you need discipline and knowledge of what you doing and when you do it. This is all about
  • #23
  • Sep 28, 2008 9:42am Sep 28, 2008 9:42am
Quoting fxtrader42
what ECN are you using where you see those kind of spreads?
HotspotFX and FXCM. Consistantly 6-7 pips, mostly above 7 pips rarely below. Dealing desks are even worse.
  • #24
  • Sep 28, 2008 9:44am Sep 28, 2008 9:44am
Quoting TradeToWin
It has been a year now trading forex and still can not understand why people care about 3-4 pips more in the spread!!
Do you trade to make 2-5 pips that these 3-4 pips more from the spread will make difference?
When you trade, you need discipline and knowledge of what you doing and when you do it. This is all about
It depends on your trading style. If you swing trade, 3-4 pips extra on a spread is not much bother.When day trading it is annoying. When scalping you may as well pack up and go home.
  • #25
  • Sep 29, 2008 10:57am Sep 29, 2008 10:57am
Quoting agisthos
HotspotFX and FXCM. Consistantly 6-7 pips, mostly above 7 pips rarely below. Dealing desks are even worse.

Look at the attachment... you all stand corrected
Attached Image
  • #26
  • Sep 29, 2008 11:07am Sep 29, 2008 11:07am
Nice pricing. I guess Hotspot will have to do something soon, or else they will loose market share. Constantly 2-3 pips in eur/usd and usd/jpy just doesn't cut it.
  • #27
  • Sep 29, 2008 2:55pm Sep 29, 2008 2:55pm
Quoting lasty
Attachment

Thats the best cartoon I have seen in awhile. LOL
  • #28
  • Sep 30, 2008 8:04pm Sep 30, 2008 8:04pm
Quoting shrike
Nice pricing. I guess Hotspot will have to do something soon, or else they will loose market share. Constantly 2-3 pips in eur/usd and usd/jpy just doesn't cut it.
So if you put a bid or offer in it will tighten the spread wouldnt it ?
  • #29
  • Sep 30, 2008 8:36pm Sep 30, 2008 8:36pm
To hell with a Central Exchange, unless of course it's like the one in the Forex.com commercials I see at night!

A ninja (Yen), a Musketeer (euro), a cowboy (dollar), and a knight (pound) are all in what looks like the Roman Colosseum fighting it out. Now that's trading!

;-)

Clockwork
  • #30
  • Last Post: Oct 3, 2008 3:35pm Oct 3, 2008 3:35pm
Dukascopy is about as close to a central exchange as you will get in my opinion, offering liquidity through Currenex, Hotspot FXi, Lava, and their own list of banks (SWFX). I have not found anyone that offers more liquidity than them, just my .02
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