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EUR/CHF

  • #3,001
  • Feb 20, 2012 12:22pm Feb 20, 2012 12:22pm
Quoting coolkaps4u
Hmm.. I was not aware of this fact

"your positions do not add volume to the market to help push the pair in your favor."

Is it leverage which do that ?

How is your experience with FXCM UK..??
I am also looking to open another account with small money so I can take a big position without being feared of wiped out.
What fidza means is that your positions are similar to CFDs, you have a position but it is not executed in the market... you trade against your market maker, I do not like that.
  • #3,002
  • Edited 4:18pm Feb 20, 2012 3:57pm | Edited 4:18pm
Quoting Fidza
I think that Oanda hedges their positions against their customers, its the only thinkable reason for them to be charging interest when there should be a 0.75% carry over on this pair, if Oanda is shorting the EUR/CHF to hedge against their clients longs they will be paying interest on those shorts and are obviously passing the cost on to their customers.
Fidza, I think you are a bit mixed up... Oanda is taking the other side of their client's trade - yes - but if you go LONG, that means Oanda has taken a SHORT against you and therefore they must go LONG in the real market to hedge this position. With so many of their clients long the EUR/CHF they can't offset the risk internally (say if the positioning of long/short was 50/50) so they must have a major LONG position externally. Of course they would be earning interest on this, not paying it (and making a good profit too!)

With regard to Oanda not paying interest on clients' long EUR/CHF positions, Oanda base their interest payments/charges on the LIBOR rates not the Central Bank rates so if you have a look at this page:

http://www.global-rates.com/interest...bor/libor.aspx

The 3 month LIBOR for CHF is > 0% and the 3 month LIBOR for EUR is < 1%. Once they add a margin of say 0.5% on each side the client is left with nothing (actually Oanda clients are paying 0.01% now to hold a long EUR/CHF).

Happy to stand corrected, but this is the way it has been explained to me.
  • #3,003
  • Feb 20, 2012 8:13pm Feb 20, 2012 8:13pm
Quoting Fizzerr
Fidza, I think you are a bit mixed up... Oanda is taking the other side of their client's trade - yes - but if you go LONG, that means Oanda has taken a SHORT against you and therefore they must go LONG in the real market to hedge this position. With so many of their clients long the EUR/CHF they can't offset the risk internally (say if the positioning of long/short was 50/50) so they must have a major LONG position externally. Of course they would be earning interest on this, not paying it (and making a good profit too!)

With regard to Oanda not...
I am not going to claim to understand how every market maker goes about making their business,but from what I have been told by acquaintances in the know how, market makers either make their money by betting against their customers inhouse, some of the positions opened by these customers never make it to the interbank exchange ,alternatively they place an opposite order to yours into the market, I also found this conflicting ,but given a statistical fact that 95% of traders lose money ,it kind of makes sense for a market maker to place an inverse position to traders into the exchange ,statistically they will stand to lose in the long term against 5% of their customers and gain against the 95%, if they did indeed match all orders and then send them through to the interbank, they would have no need for a dealing desk .Also they dont need to offset 100% of their open positions ,their clients positions tend to do that against one another , its what spills over that needs to be offset, if it was 50/50 long to short they would not need to offset anything at all.
I am not waging my soul that this is indeed how it works , because this info came to me from a third party,but one I trust to know what he is talking about,due to the nature of his business.

Bottom line market makers are in it to make big money where as no dealing desk brokers make their money on the spreads and a small percentage of the rollover interest, but most importantly when you open a position your position adds weight to the liquidity in the interbank market ,which is what determines price movement.I personally am not a fan of market makers but you probably already concluded that
Officer ... I swear to drunk I am not God
  • #3,004
  • Feb 20, 2012 8:34pm Feb 20, 2012 8:34pm
Oanda does not have a dealing desk. There is a good post in one of the forums which explains how brokers like Oanda work. I will see if I can find it for you.
  • #3,005
  • Feb 20, 2012 8:41pm Feb 20, 2012 8:41pm
Quoting Fizzerr
Oanda does not have a dealing desk. There is a good post in one of the forums which explains how brokers like Oanda work. I will see if I can find it for you.
Thats all fair play , this whole discussion which has gone a little off topic for this thread began when someone mentioned the negative overnight interest on this pair, and I suggested that it might be due to the fact that they offset their clients positions,and somehow it got to this point of discussing market makers, I have no issues with Oanda and will not say they are good or bad as I have no experience with them , I just simply don't agree with them charging their clients for holding an overnight position that should be receiving positive roll over.Think we should bury this issue now and get back on topic.

Quoting Fidza
I think that Oanda hedges their positions against their customers, its the only thinkable reason for them to be charging interest when there should be a 0.75% carry over on this pair...
Officer ... I swear to drunk I am not God
  • #3,006
  • Feb 20, 2012 9:00pm Feb 20, 2012 9:00pm
Fair enough. Here's the link if others are interested:

http://www.forexfactory.com/showthread.php?t=7484
  • #3,007
  • Feb 21, 2012 1:06am Feb 21, 2012 1:06am
Much lower trade balance, positive Eu meeting.
I think SNB will act summer maybe.
  • #3,008
  • Feb 21, 2012 1:14am Feb 21, 2012 1:14am
Quoting infinity76
Much lower trade balance, positive Eu meeting.
I think SNB will act summer maybe.
you mean summer of 2050
  • #3,009
  • Feb 21, 2012 11:52am Feb 21, 2012 11:52am
Quoting ibpo
eurchf today trading range 1h chart to day chart

http://www.youtube.com/watch?v=49RfTbIepPg

Position closed for 12 pips..Well.. So far this pair has given me good 7000$ for small range pips, I don't mind booking small, I know I may miss big bus.. But I am OK with small booking pips as I do day trade and love to see account grow.. on weekly basis.. daily aim is 100$ for 1 lot any pair is ok
But When EUR/CHF goes lower.. I love it as it gives me more money..big position can be opene..

I hate Oanda..because I am paying interest there.. But.. Oanda is good in so many other ways that interest part on this doesn't hurt .
  • #3,010
  • Feb 21, 2012 12:50pm Feb 21, 2012 12:50pm
What is a good range to trade this pair?
  • #3,011
  • Feb 21, 2012 2:10pm Feb 21, 2012 2:10pm
Quoting duderoo1
What is a good range to trade this pair?
Well, pick bottom and close high.
Position size is on your risk appetite
Stop loss before floor 1.2000

I try at this time 1.2069 and close at 81,82

second position I open if it goes down 1.2039 and wait for it to go UP
Same stop.
Once in a week it moves this much

Normally low on Tue,Wed.. Thur&Fri.. UP..
  • #3,012
  • Feb 22, 2012 9:09am Feb 22, 2012 9:09am
Quoting coolkaps4u
Well, pick bottom and close high.
Position size is on your risk appetite
Stop loss before floor 1.2000

I try at this time 1.2069 and close at 81,82

second position I open if it goes down 1.2039 and wait for it to go UP
Same stop.
Once in a week it moves this much

Normally low on Tue,Wed.. Thur&Fri.. UP..


So far wed theory is holding.. most of the risk off.. as these brokers want to give lower interest so more often than not.. market goes out and position were taken off..
Just a belief.. may be wrong.. But pattern is noticed more often..
Time to go long..
  • #3,013
  • Feb 22, 2012 2:01pm Feb 22, 2012 2:01pm
No short scalper here ?
I see 4-5 are viewing this thread..

All are long term buyers..-sellers??
  • #3,014
  • Feb 22, 2012 3:21pm Feb 22, 2012 3:21pm
Quoting coolkaps4u
No short scalper here ?
I see 4-5 are viewing this thread..

All are long term buyers..-sellers??

I'm long on this pair....
  • #3,015
  • Feb 22, 2012 3:38pm Feb 22, 2012 3:38pm
Quoting multi888
I'm long on this pair....
Me 2 and will be for a while.... i hope
  • #3,016
  • Feb 22, 2012 4:35pm Feb 22, 2012 4:35pm
Yep. long 1.2061
  • #3,017
  • Feb 22, 2012 9:21pm Feb 22, 2012 9:21pm
EURCHF drops again…just can’t understand…..EURUSD rebounds from the 1.26 level to the current 1.32 level. However, EURCHF drops from 1.24 to 1.205 today…as SNB takes a very strong position in defending the 1.2 level and many retail traders are rushing in to take long positions on this pair, what makes it drops against the eur? It seems that the movement is illogical….
  • #3,018
  • Feb 22, 2012 10:02pm Feb 22, 2012 10:02pm
Quoting Wallace
EURCHF drops again…just can’t understand…..EURUSD rebounds from the 1.26 level to the current 1.32 level. However, EURCHF drops from 1.24 to 1.205 today…as SNB takes a very strong position in defending the 1.2 level and many retail traders are rushing in to take long positions on this pair, what makes it drops against the eur? It seems that the movement is illogical….
Because investor treating the CHF as safe haven thus they sell EUR Buy CHF...but we do the opposite.
  • #3,019
  • Feb 22, 2012 11:07pm Feb 22, 2012 11:07pm
Quoting multi888
Because investor treating the CHF as safe haven thus they sell EUR Buy CHF...but we do the opposite.
it will be considered a safe haven till Swiss decide to do something, especially now that they got pretty much kicked out from Japanese Yen.
  • #3,020
  • Feb 22, 2012 11:25pm Feb 22, 2012 11:25pm
i long also with this pair current at 1.2051. snb do something pls
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