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MB Trading Futures - Introduction

  • #5,861
  • Sep 23, 2010 11:30am Sep 23, 2010 11:30am
Quoting nano_fx0
any chance to see the webinar being recorded? I can't attend the webinar coz it's my sleeping time.
Did you receive the recording? If not, email me at [email protected]
  • #5,862
  • Sep 23, 2010 1:16pm Sep 23, 2010 1:16pm
Quoting shrike
And if you are going to compare MB data to the future, do it right. I attached a 10-second chart of 6E and mbt below. MB-data is the lower chart. See i.e. the vertical blue line - the future closed that candle at 50, the mb candle at 75. On MB 50 occured 2 bars later (=20 seconds late).
The prices MB is displaying are unique to MB's liquidity pool. They will not be, nor are they supposed to be exactly the same as the future's price, or the price in any other spot market liquidity pool.

I was responding your assertion that the data was faulty,

"....even a bad tick or stale pricing ([email protected])"

I wanted to demonstrate to you that it wasn't a crazy way off price, like a bad tick, by showing you that the broader EU market, even in the futures, really went to 1.3110.

You can not look at prices in one liquity pool, say the Gain feed, and expect the prices in MB's liquidity pool to match tick for tick. They are seperate independent pools.

Each pool is aware of the broader market's valuation, so the various liquidity pools and the futures will track very closely, as people would arbitrage across the pools if they diverged by an amount large enough to make it profitable to do so.
  • #5,863
  • Sep 23, 2010 1:39pm Sep 23, 2010 1:39pm
Well, you started the chart posting, not me. But okay.. so its a coincidence that mb-price makes the same price-movements like the other feeds, just 20 seconds shifted in time? It is not slow hardware? Its because they are an ecn and their liquidity pool is all that different from the rest of the fx world? Same for the 30 seconds almost without quotes?

eSignal had the exact same problems, until they upgraded their stuff.

Maybe JlB can clear up if that 3110 print 2 minutes after the release was actually tradeable or not, because i highly doubt it. I doubt it because mb is an ecn and there were lots of better bids in the market than 3110 at that time. If he cares to comment at all.
  • #5,864
  • Sep 24, 2010 4:11am Sep 24, 2010 4:11am
interbankfx claimed to be an ECN, so are they really an ECN?
  • #5,865
  • Sep 24, 2010 7:01am Sep 24, 2010 7:01am
Quoting sg_trader
interbankfx claimed to be an ECN, so are they really an ECN?
No, they route to a single destination. However, that is a question for another thread, what does it have to do with the topic of this thread?
FXChant Singing the World of Forex
  • #5,866
  • Sep 24, 2010 11:25am Sep 24, 2010 11:25am
I think most people have read and understand the implications of the 50:1 leverage, but let me cover some of the highlights here.

First, the ruling moves major pairs to 50:1 and exotic crosses to 20:1. None of the pairs that we trade here are considered exotic crosses under the ruling, so everything will be 50:1.

Second, I’ve been getting a lot of questions about whether this means that spreads will change or commissions will rise. Neither of these are affected by the ruling.

All that the ruling does is change the amount of margin that is used in your account by each trade and then LOWERS slightly the swap charges/credits. Here’s the details.

On our system, one lot = 10,000 traded (other platforms consider this a “mini”). If you buy 1 lot of the EURUSD at 1.3500, then you are entering a trade that uses $13,500 in your account. At 100:1 leverage, this meant that $135 of your account was set aside as “margin” to place this trade. As the EURUSD moved up and down, each pip of movement moved your account value up or down $1. The commission on the trade if you are at our standard rate of $2.95 per 100,000 would be $0.40 because you are using $13,500. If you held the trade overnight, the swap rates on the trade would be based on the fact that you are borrowing 99% of the $13,500 (or $13,365). You would be charged a swap based on that amount.

Under the new rules, let’s look at each of those number. If you buy 1 lot of EURUSD, you are still entering a trade for $13,500. The commission on the trade is still the same ($0.40) because you are still transacting $13,500. Each pip of movement is still $1. What is different is that instead of setting aside $135 (1% of the trade) out of your account for margin to place the trade, we now set aside $270 (2%, or 50:1). And for swap rates, you are borrowing slightly less (98% of the $13,500), so the rate would be charged on $13,320 instead of $13,365.

The prices of execution, spreads, etc., are not impacted at all. The market remains the same and determines what price you get based on where the various banks and participants in our system are showing their buy and sell orders.

So those are the only differences. There is no impact to execution, spreads, commissions, or value of a pip per lot. Swap fees go down slightly, and the amount of money that you need to maintain to place and hold a trade doubles. The majority of our customers never use total account leverage so high that it puts them in a position that it utilizes anywhere near 100:1 leverage on their whole account value as that could create very quick margin calls to close out positions. There is a difference here as you can see in the math, but it is not overwhelming.
  • #5,867
  • Sep 24, 2010 12:45pm Sep 24, 2010 12:45pm
Quoting jleblang
I think most people have read and understand the implications of the 50:1 leverage, but let me cover some of the highlights here....
Hi
Is that just Talks or leverage going to change ?? IF so when that rule will start ??
  • #5,868
  • Sep 24, 2010 1:48pm Sep 24, 2010 1:48pm
Quoting egkid
Hi
Is that just Talks or leverage going to change ?? IF so when that rule will start ??
Rule takes affect October 18th.
  • #5,869
  • Sep 24, 2010 1:55pm Sep 24, 2010 1:55pm
Justin,,,I noticed no max deviation on the order page,,,,on fast moving markets does this mean I can be slipped in at any price MBT wants or lots of requotes,,?..??
  • #5,870
  • Sep 24, 2010 1:56pm Sep 24, 2010 1:56pm
Quoting jleblang
Rule takes affect October 18th.
O , I don't know any thing about this!
CFTC, NFA New rule to all regulated brokers?
I trade long term what about already running trade will effect @ 18 October even if i open them before
  • #5,871
  • Sep 24, 2010 2:15pm Sep 24, 2010 2:15pm
Quoting egkid
O , I don't know any thing about this!
CFTC, NFA New rule to all regulated brokers?
I trade long term what about already running trade will effect @ 18 October even if i open them before
Welcome Back! Yes, all US Brokers.

Trades held on Oct 18th even from the previous day will have to meet the margin requirements. I'll provide more details to how that will work early next week.
  • #5,872
  • Edited 2:52pm Sep 24, 2010 2:21pm | Edited 2:52pm
Quoting jleblang
Welcome Back! Yes, all US Brokers.

Trades held on Oct 18th even from the previous day will have to meet the margin requirements. I'll provide more details to how that will work early next week.
Thanks to concern and reply
last question in your example with 1.35 e/u customer get margin call when equity became less than 270$?

This will kick many out of the market ( Traders and brokers ), Less volume and trades wounder if that could effect MBT liquidity as a broker?
As a trader will need More MM to control open position
Wish you nice weekend Justin
  • #5,873
  • Sep 25, 2010 10:05pm Sep 25, 2010 10:05pm
Just look at dukascopy. Their rollover swap rates is so much lower than yours. Just go to their website and check it out.
  • #5,874
  • Sep 26, 2010 1:43am Sep 26, 2010 1:43am
I have searched the MB Trading web site, but cannot find a complete list of swap rates. All I can find is an example using a formula and the EUR/USD to show how it is calculated.

Where can I find the list?

Thanks.
  • #5,875
  • Sep 27, 2010 4:45am Sep 27, 2010 4:45am
Quoting jleblang
First, the ruling moves major pairs to 50:1 and exotic crosses to 20:1. None of the pairs that we trade here are considered exotic crosses under the ruling, so everything will be 50:1.
Hi Justin,
What about the crosses like EUR/NOK, EUR/SEK, USD/DKK, USD/NOK, USD/SEK, which you are kind to have in your offer (source: https://www.mbtrading.com/forexSpreadsPairs.aspx)? Will they also fall under the 50:1 rule right after October 18th?
"hey hey what can I do"
  • #5,876
  • Sep 27, 2010 12:05pm Sep 27, 2010 12:05pm
Quoting Paul Lipsi
Justin,,,I noticed no max deviation on the order page,,,,on fast moving markets does this mean I can be slipped in at any price MBT wants or lots of requotes,,?..??

Use a Stop Limit or Limit order and you control your slippage. You can't get a worse fill than your Limit price. Works great!
  • #5,877
  • Sep 27, 2010 12:33pm Sep 27, 2010 12:33pm
Quoting egkid
Thanks to concern and reply
last question in your example with 1.35 e/u customer get margin call when equity became less than 270$?

This will kick many out of the market ( Traders and brokers ), Less volume and trades wounder if that could effect MBT liquidity as a broker?
As a trader will need More MM to control open position
Wish you nice weekend Justin
Egkid,

Keep in mind that people get stopped out of trades FASTER at HIGHER leverage. If anything, this should reduce margin stop outs somewhat. Also, it will have no effect on our liquidity, which comes from outside providers…no such thing as “MBT liquidity.”
  • #5,878
  • Sep 27, 2010 12:33pm Sep 27, 2010 12:33pm
Quoting Macinvestor
I have searched the MB Trading web site, but cannot find a complete list of swap rates. All I can find is an example using a formula and the EUR/USD to show how it is calculated.

Where can I find the list?

Thanks.
Macinvestor,

In our Desktop software (Live or Demo), you can create a Watchlist and add the Buy and Sell Premium columns to see what they are for any pair. This way, you have the latest numbers.
  • #5,879
  • Sep 27, 2010 12:34pm Sep 27, 2010 12:34pm
Quoting roldreth
Hi Justin,
What about the crosses like EUR/NOK, EUR/SEK, USD/DKK, USD/NOK, USD/SEK, which you are kind to have in your offer (source: https://www.mbtrading.com/forexSpreadsPairs.aspx)? Will they also fall under the 50:1 rule right after October 18th?
Roldreth,

Yes, these pairs will all be 50:1 like everything else. None of the pairs that we offer are considered “exotic” under the new CFTC ruling, so nothing will be 20:1.
  • #5,880
  • Sep 27, 2010 1:08pm Sep 27, 2010 1:08pm
Quoting jleblang
Egkid,

Keep in mind that people get stopped out of trades FASTER at HIGHER leverage. If anything, this should reduce margin stop outs somewhat. Also, it will have no effect on our liquidity, which comes from outside providers…no such thing as “MBT liquidity.”
Hi Justin
1- What do u mean by
no effect on our liquidity, which comes from outside providers
Can clear it some more, Sorry i didn't get it

2- True
people get stopped out of trades FASTER at HIGHER leverage.

3= Could u please answer my 3rd question about margin call?

Appreciate your help
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