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Nice for Scalpers to know about OANDA

  • #1
  • First Post: Jul 16, 2008 10:04pm Jul 16, 2008 10:04pm
Talked to Oanda today and they made it known that you may trade up to 10 mill / trade and get execution just as fast as any other trade. And they have no problem with you scalping with that size.

10 mil lots = $1000/pip

With a 4 pip stop loss this would be 4000 risk which with risking only 2 percent of your account per trade would mean having a $200,000 account.

I hope to be there some day opening those 10 mil positions!

At least we know that until we are above $200,000 we can stay with Oanda. After that, we need to find another broker.

But... what other broker can give say 50 mil + lots (entire order) with quick execution?

Answer anyone?

Thanks,

Mike Lewthwaite

Please wait for an agent to respond.
https://server.iad.liveperson.net/hc...o/chatinfo.gifYou are now chatting with 'OANDA'
OANDA: Thank you for choosing OANDA. How may I help you?
mike: Hello. What is the largest lot size I could expect to get filled with and with good execution at Oanda?
mike: hello?
OANDA: The maximum amount of units you can trade at one time is 10 million units.
mike: ok. And will you get good fill with 10 mill?
mike: or is this much harder
OANDA: Sure, you can expect the same fill rates as your other trades.
mike: Ok. If you ever needed more than 10 mil then you would suggest finding another broker?
OANDA: You may trade more than 10 million units on the same currency pair. You just have to break it up into 10 million units per transaction. There's no limit to how many transactions you may do for 10 million units.
mike: oh ok. So on one click you could just click twice real fast and get filled for 20 mil
OANDA: But you must wait between closing and opening these transactions for a specified period of time (i.e., You cannot close them all at once).
mike: oh
mike: one must be closed first before opening
mike: another
OANDA: No, you can't do that. If you want to be filled for 20 million units at once, you might want to consider another broker. No, you don't need to close one before opening another, but you need to wait about a minute or so between the orders so we can properly hedge your trade in the interbank.
OANDA: For instance, you can do 10 mil EUR/USD, wait for 2-3 minutes, and then 10 mil EUR/USD again without closing the first order.
mike: Ok. So if you are scalping (in and out within 1-2 min.) then Oanda would not like you to be trading 10 mil lots?
OANDA: Correct. We do have clients that trade 10 mil units and close them in, say, five minutes or so. That is acceptable.
mike: I have heard that Oanda does not have a problem with scalpers unless they are using automated system to beat the lag in Oanda. Many have claimed to trade with you and be in and out of positions within seconds and have no problems. Obviously there would be a problem when trading 10 mil lots. SO what exactally is the cut off point where it gets to be a problem and you need people to wait 5 min. or so? 500,000 1 mil 3 mil etc?
OANDA: I was just saying that as an estimate. We have a client who trades 10 mil units regularly and closes out positions in only 1-2 minutes for small gains (5-10 pips). That's completely fine with us and we have no problems with short-term traders. As you have mentioned, we do have a problem with 'latency traders'.
OANDA: Those traders who use a faster feed to try to beat the 'lag' in OANDA price feeds to predict prices.
mike: yes I have heard. Ok thank you. Your answers have been very helpful.
OANDA: You're welcome. The 'waiting' I was saying was for orders larger than 10 million.
OANDA: If you are only trading 10 million, then you can 'scalp' no problem.
mike: ok gotcha. That makes more sense
mike: THanks again
OANDA: You're most welcome. Thank you for chatting with us Mike.
OANDA: Goodbye.
  • #2
  • Jul 17, 2008 7:18am Jul 17, 2008 7:18am
The only downside to Oanda for Scalpers is 50:1. I don't personally use a live Oanda account so I can't say if there are other downsides etc. A plus is their 1 click execution but this is not on FXTrade yet from my understanding. The only other thing I wish they would do is show the bid and ask in the market order box this way people using other charting software can make sure the spread has not skyrocked for some reason such as a news event coming out etc.
  • #3
  • Edited 4:43pm Jul 17, 2008 4:22pm | Edited 4:43pm
Richard,

Quoting fxRichard
The only downside to Oanda for Scalpers is 50:1.

Yes the 50:1 is a killer with Oanda for scalpers. They seem to think that anything more is just ridiculous and not needed.

But they do not have the scalper in mind. If a scalper has a 4 pip stop loss then that 4 pips must be worth 3% of his account in order for him to be risking 3% / trade.

Say we have 1000 with oanda. 1000 usd can purchase 31,250 Eur/Usd. Making the pip value aproximately $3 / pip.

Now 3 % of 1000 is $30. So right off the bat with Oanda, if you want to risk 3% of your account, then you'd better have a maximum of 10 pip stop loss. (no room for scalpers with a 3% r/trade.) And you better not even think of putting on another trade. (many have rules such as, never put more than 2% on one trade, but also never have more than 6% out in trades at once. This is not a problem with Oanda because you cant even have 2% out on one trade, never mind putting out 2 other trades for 2%)

This really stinks and apparently they have not thought of this.

Personally I want to risk no more than 2% per trade which requires a $20 stop loss and at $3 / pip would require 8.5 pip stop loss.

So I cant even do that. I really have to limit my risk to 1.5 % / trade in order to trade with Oanda and a 4 pip SL.

For right now this is ok. But I would like to be able to scalp other pairs at the same time I am scalping Eur/Usd and also I would like to be able to up the anti to 3% if something has a very high probability.

But since I am just starting out I think this might be safe for me. Even at the rate of $3 / pip if I can just make an average of 4 pips / day then this is more than 1% / day return which is my goal.

I don't personally use a live Oanda account so I can't say if there are other downsides etc. A plus is their 1 click execution but this is not on FXTrade yet from my understanding.

From talking to them recently they said it will definitely be in the next upgrade and that this will probably be in the next few months. I love the 1 Click on the Game. This is a must for scalpers!

The only other thing I wish they would do is show the bid and ask in the market order box this way people using other charting software can make sure the spread has not skyrocked for some reason such as a news event coming out etc.

I think you can do this if you just use the Quote Panel option. Even on the current FXTrade. You can pop out the quote Panel and then put it next to whatever chart you want to use. Then you just click on the bid or ask price and it pops up a confirm window (which is what is done away with in one click) and you confirm.
Mike Lewthwaite


P.S. On my previous example I mentioned a 200,000 account with a $4000 4 pip SL. with 10 mill lots. This is imposible with 50:1 With 200,000 usd account you can only buy 6,250,000 eur/usd not 10 mil.
  • #4
  • Dec 23, 2009 6:24am Dec 23, 2009 6:24am
thats great , if they let us scalp as we want if we hold our trades for few minutes
  • #5
  • Dec 23, 2009 6:41am Dec 23, 2009 6:41am
Quoting tar
thats great , if they let us scalp as we want if we hold our trades for few minutes
You can even hold them for only a few seconds. They don't care about that.
  • #6
  • Jan 7, 2010 5:58pm Jan 7, 2010 5:58pm
so i choose the right broker.
  • #7
  • Jan 24, 2010 10:49am Jan 24, 2010 10:49am
OANDA: No, you can't do that. If you want to be filled for 20 million units at once, you might want to consider another broker. No, you don't need to close one before opening another, but you need to wait about a minute or so between the orders so we can properly hedge your trade in the interbank.

this basically tells you that they are pure market maker, right? my orders do not go direct to the interbank market, am I right?
  • #8
  • Jul 31, 2010 9:49pm Jul 31, 2010 9:49pm
Quoting kengur
OANDA: No, you can't do that. If you want to be filled for 20 million units at once, you might want to consider another broker. No, you don't need to close one before opening another, but you need to wait about a minute or so between the orders so we can properly hedge your trade in the interbank.

this basically tells you that they are pure market maker, right? my orders do not go direct to the interbank market, am I right?
this might help

http://fxtrade.oanda.com/images/fx_t...de_view_lg.gif

http://fxtrade.oanda.com/forex_tradi...ture_execution
  • #9
  • Aug 1, 2010 10:41am Aug 1, 2010 10:41am
Should look into a prime broker. Depending on your deal with the PB you can have spreads as low as .2-.7 so scalping is almost encouraged and execution capabilities of 50 mio-200 mio execution during peak hours. And if you cannot establish the credit there are third parties that will handle this for you.
  • #10
  • Aug 1, 2010 5:11pm Aug 1, 2010 5:11pm
Quoting Dabek FX
Should look into a prime broker. Depending on your deal with the PB you can have spreads as low as .2-.7 so scalping is almost encouraged and execution capabilities of 50 mio-200 mio execution during peak hours. And if you cannot establish the credit there are third parties that will handle this for you.
PB such as ?
Third parties such as ?
  • #11
  • Last Post: Aug 3, 2010 1:09pm Aug 3, 2010 1:09pm
Oanda is good, but the spreads are big around news, but ultimately they are a good broker, despite this.
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