Hi people, the question is on title. For example we have a bull bar on 60 minute chart of dow jones 30. Then how can we know, how many contracts are traded in the follow time frame
Data Box (volume) from futures chart. CFD charts are not real contracts. {image}
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Thanks for your answer.
And can i ask what do you mean by saying those are not real contract? I want to do some resreach how much contract average are traded in one bar under some circumstances like breakout or failed breakout
{quote} Thanks for your answer. And can i ask what do you mean by saying those are not real contract? I want to do some resreach how much contract average are traded in one bar under some circumstances like breakout or failed breakout
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CFDs have no effect on the "real" market they mirror as they're just a market created @ your broker but will not be traded on any exchange & have no effect on the underlying price regardless of the quantity you buy/sell unless someone hedges a CFD position with a futures position or opposite.
If you placed an order to buy 10,000 futurescontracts of YM, that would cause a spike in the price. If you bought 10,000 CFD contracts of YM, that wouldn't move the price by even 1 tick as the order doesn't go the the exchange where YM is traded.
{quote} CFDs have no effect on the "real" market they mirror as they're just a market created @ your broker but will not be traded on any exchange & have no effect on the underlying price regardless of the quantity you buy/sell unless someone hedges a CFD position with a futures position or opposite. If you placed an order to buy 10,000 futures contracts of YM, that would cause a spike in the price. If you bought 10,000 CFD contracts of YM, that wouldn't move the price by even 1 tick as the order doesn't go the the exchange where YM is traded.
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Even in real exchange contracts placed under two different category, disclosed and undisclosed so it's not possible to estimate volume on real time and only available on next day as statutory official volume declared by exchange. Oh yes CFD trading are fully bucket shop trading and never placed in real exchanges.
{quote} Even in real exchange contracts placed under two different category, disclosed and undisclosed so it's not possible to estimate volume on real time and only available on next day as statutory official volume declared by exchange. Oh yes CFD trading are fully bucket shop trading and never placed in real exchanges.
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If I trade through a firm like Pepperstone, is it ok?
{quote} If I trade through a firm like Pepperstone, is it ok?
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Its not about how good is pepperstone, the point is pepperstone dont have future instrument for u, they only have CFD. If u want a future instrument u must go to some broker like interactive broker etc...
I understand. But the futures market is a real market and Pepperstone makes the market i.e. is a bucketshop. So do they play around with the numbers?
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Is pepperstone a honest broker, that i dont know. But they have only CFD instrument does not make them a bucketshop. It is just simple, when u trade with CFD u make no market impact and you cant have real volume on CFD ( just like forex)
I understand. But the futures market is a real market and Pepperstone makes the market i.e. is a bucketshop. So do they play around with the numbers?
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I have a CFD account with Pepperstone and a futures account with AMP. I don't think Pepperstone play around with the numbers from my observation. 1 lot of Pepperstone CFD is a tenth the size of 1 lot of the futures, depending on what you're trading, tick increments are 0.1 of a point on the CFD - 0.5 of a point is the tick increment on the index future.
Advantages of CFDs. no monthly data fees, greater leverage (less margin required), no commissions or clearing fees.
Disadvantage of CFDs. spreads are wider, if you're going to hold overnight you have to worry about swap rates and dividend adjustments, can't see the depth of market.
I understand. But the futures market is a real market and Pepperstone makes the market i.e. is a bucketshop. So do they play around with the numbers?
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Better you trade Local exchanges . Most of local exchanges (standard markets) equipped with future contracts . But success in trading don't depend either of any markets, be it future or cfd . In every markets you have to face market makers, only if you dare to see reds with right analysis to right side can prevent you from losses. Most highly regulated trading requires lots of money so if you have enough capital , trade in Local exchanges.
I understand. But the futures market is a real market and Pepperstone makes the market i.e. is a bucketshop. So do they play around with the numbers?
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There is actually no difference if you have no idea of good trading. Only difference..regulated brokers with proper regulatory ensure return of main capital and profit(if any) but bucket shop brokers captivate both.
Belmont offer DMA CFDs but charge $11 commission. Most Mt4 cfd provider only offer max limit number of lots. Pepperstone max is 100, but that's only equivalent 10 futures lots.
Hi people, the question is on title. For example we have a bull bar on 60 minute chart of dow jones 30. Then how can we know, how many contracts are traded in the follow time frame
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Use Market Profile or Market Delta footprint. will tell you exactly how many contracts
{quote} CFDs have no effect on the "real" market they mirror as they're just a market created @ your broker but will not be traded on any exchange & have no effect on the underlying price regardless of the quantity you buy/sell unless someone hedges a CFD position with a futures position or opposite. If you placed an order to buy 10,000 futures contracts of YM, that would cause a spike in the price. If you bought 10,000 CFD contracts of YM, that wouldn't move the price by even 1 tick as the order doesn't go the the exchange where YM is traded.
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thats not complete true.
if the broker is booking you in B book and trade against you, then its 100 % true.
if you are in a A book, so the broker is bringing your trades to others to give the risk away for the broker, then this will happen: then broker will buy/sell the future to protect against their cfd buyers/seller. because future buying is cheaper then cfd, the broker has a win. so buying higher amount of cfd will bring future price exactly same way like buying the amount in future. ofcourse you have to calculate the ratio, that any future is some cfd in ratio. only when there is a full ratio in cfd there will be a future protection done.
so, 10.000 cfd has same spike in price like 10.000 future, if the ratio is 1 cfd is like 1 future. if for example 50 cfd are the worth of 1 future, then 10000 futures is like buying 200 futures.
if you are a good trader, your broker will book you inside A book, or will close your account, if the broker dont have a A book. So any good trader will bring with cfd same moves in futures market like buying futures. thats important to know for trading cfd! offcourse this is only interesting for traders in profit, or a trader is booked inside the b book.
but if you want calculate the trade contracts, allways use futures. because cfd trades will simply activate future trades for profit traders in the past.
and loss traders cfd are unimportant for the market, like "srt" did say correct.
