Questions About Forex

[Nicholle]

Hi,

I am curious about trading Forex, but unsure of a couple of things. I read somewhere that there is not an accurate volume reading for Forex. Is there any volume reading at all, and is it accurate? One part of my trading system deals with volume, so it is important to me. Also, I want to be able to go with a brokerage integrated with eSignal. Does anyone here use any of the Forex brokers listed for integrated trading? Also, I have heard that price quotes usually will not match the charts when using one brokerage and not using the charts that they provide. If one uses eSignal with one of the integrated brokers will the chart prices be accurate? I am interested in day trading mainly, using the 5 minute charts, so I just want to make sure this is possible, considering the chart prices might not match the actual trading prices.
Thank you very much for your help, I am grateful to all who are able to help me with these questions! Have a great day!

Nicholle

[JayF]

Hello Nicholle,

Here's a few things to keep in mind about Forex.

1) Trades are not reported. Only Bid/Ask Quotes are sent from the contributing banks.
2) No volume is reported. The banks only disseminate bid and ask quotes. There is no bid and ask size.
3) Charts are built using the Bid prices, and the volume on the chart is the number of updates to the Bid.

I can't really comment on your other questions (regarding brokers) as I haven't personally traded Forex. Hopefully, others that have can comment.

[fabrizio]

Nicholle

FX is interesting but somehow "dangerous. Ceck the Nr,
. Of PIPS your broker offer you (bid /ask spread). The average is 5 , the best is 3 the worst is 10.
Than check the leverage offered you evidently the higher the best but......be carefull if you are not expert you can find yourself in really though situations with a high leverage and the market against you......

Be carefull that you play small money against gifgantic masses, so your broker could be your allie or your......foe....

Best is papertrade for a while.

You have not the stamina you got in S&P . But if you get passionate you will bve able to raise a considerabòle amount of money.

[Nicholle]

Jay and Fabrizio,

Thank you both very much for responding, I really appreciate it. Fabrizio, which broker do you use, and have you ever had problems with the chart price not matching the brokerages quotes? Thanks!

Nicholle

[KCOMOLLO]

The reason some quotes don't match some data providers charts is that the broker you choose may have a different spread for Forex. THis is how they make their money. True currency exchange has extremely tight spreads which your broker uses but they then charge you a wider spread and pocket the difference. Some have spreads as tight as 3 pips but the banks and your broker are dealing with 1 pip probably and pocket two pips.

Cheers,
KCOMOLLO

[fabrizio]

Nicholle

Kcomollo ( dont'you have a nicer nick buddy?) has answered properly .

Well I'm using Oanda for the time being. Is so so but fine for my Forex activities.

Not to be pesristent, but try the paper trade of a Esignal partner.

Youn will get the feeling immediatly.

Good trade

[Nicholle]

Thank you all very much for your advice, it is all very appreciated!
Fabrizio, I will definately go ahead and paper trade with one of the eSignal partners. I am sure that will help clear up any uncertainties I have about trading forex.

Good trades to all!

Nicholle

[shannons]

Hi Nicholle;

About the closest thing you can get to estimating volume in the cash FX markets is to check open interest in the the COT Report ( http://www.cftc.gov/cftc/cftccotreports.htm ) for the currency you are trading. The open interest of a currency futures contract actually has nothing to do with daily volume being traded in the cash market, but it does help to confirm intermediate and long term trends as well as possible reversals. This probably won't help you much though, if you are needing to use the volume or open interest numbers in your system as you trade.

The price quotes almost never exactly match the charts... there are to many different banks quoting and no central exchange. I use RefcoFX ( FXCM ) for a broker, and they are usually pretty close to my charts. I think they are integrated with ESignal, as well.

Hope this helps a little.

[Nicholle]

Shannons,

Thank you very much for your reply. I will check out the link to the COT Report. I use the Bill Williams trading system to trade futures, and there is something called a squat bar that is calculated using volume. I checked out his website the other day, and in the faq section it does say that there are people successfully trading forex using his system.
I have been looking into RefcoFX also, I have come across several people on a couple of forums who are very happy with them.
Thanks again for the help, I believe that I am going to add Forex to my eSignal package and start paper trading.
I feel from the research I have done and the helpful replies I have gotten that adding Forex to what I already trade is a good move to make.

I am very grateful to all who have helped out, I hope you all have a very nice Christmas and a happy and prosperous 2004!

Nicholle

[fabrizio]

Greetings to you Nichole and a great year of trading with Esignal.

It would be nice if you could involve in the BB more Women Traders friends of yours,: women are tremendous traders but there is not such a huge representation of them and their perspective in our community

Thanks

[carloskkk]

Fabrizio,
Please help me to use eSignal with Oanda - is possible or eSignal is useless trading with Oanda? eSignal shows many spikes (up and/down) in comparation to Oanda which claims that their quotes are superior quality
Thanks,