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  • #3,441
  • Edited 6:55pm Mar 18, 2013 4:29pm | Edited 6:55pm
Noticed a very large ~66 pip price spike on the NZD/USD feed that others are saying is only showing with FXCM's charts. Was this just an error in the feed broadcast?
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  • #3,442
  • Mar 18, 2013 6:55pm Mar 18, 2013 6:55pm
Quoting Kanzler
Noticed a very large ~66 pip price spike on the NZD/USD feed that others are saying is only showing with FXCM's charts. Was this just an error in the feed broadcast?
Hi Kanzler,

Thanks for bringing this to my attention. I just got confirmation that today at 5:02 pm New York time, we received erroneous prices on our feed that affected several NZD pairs. The correct prices for that time are below.

  1. NZD/USD – 0.8250
  2. NZD/JPY – 78.60
  3. AUD/NZD – 1.25938
  4. EUR/NZD – 1.5687
  5. GBPNZD – 1.8274 bid, 1.8293 offered


The Trade Audit Committee is currently investigating and will make appropriate adjustments to any accounts that were affected. If you had any affected trades, I encourage you to log a case with the Trade Audit Committee, so you can track the status of their resolution. I apologize for the inconvenience this has caused.

Jason

  • #3,443
  • Mar 18, 2013 6:57pm Mar 18, 2013 6:57pm
Quoting Jason Rogers
Hi Kanzler,

I just got confirmation that today at 5:02 pm New York time, we received erroneous prices on our feed that affected several NZD pairs. The correct prices for that time are below.

  1. NZD/USD – 0.8250
  2. NZD/JPY – 78.60
  3. AUD/NZD – 1.25938
  4. EUR/NZD – 1.5687
  5. GBPNZD – 1.8274 bid, 1.8293 offered


The Trade Audit Committee is currently investigating and will make appropriate adjustments to any accounts that were affected. If you had any affected trades, I encourage you to [url="http://bit.ly/YI5NZ0"]log...

Thanks Jason, no inconveniences as I had no positions open at the time - I just wanted to double check that something else wasn't going on.

I do have another question, however, in regard to adding onto positions. Say I have a running short that is well into profit, and I notice a new location below my original entry that I want to add onto my short position from. If price goes above a price I deem the setup to be invalid at, however, I want to close out part of my net position which is equal to what I'd just added - effectively handling it as if it were an isolated trade and not part of a larger net position. Can I set a buy order instead of a stop order with the amount tailored to how much of the position I want closed out, or will this not work due to FIFO? I hope this question isn't confusing.
  • #3,444
  • Mar 19, 2013 5:07am Mar 19, 2013 5:07am
  •  Jamz
  • | Joined May 2012 | Status: Tops and bottoms are for bikinis | 798 Posts
Hi Jason, so should I see spreads like this every time a news item goes thru?

EUR/USD1.293351.29396 6.1 1.297071.291490.03-0.160.125.0005:59:13
EUR/JPY123.299123.413 11.4 124.147123.1390.000.000.135.0005:59:13
USD/JPY95.32395.379 5.6 95.75495.0480.000.000.135.0005:59:11
GBP/JPY144.130144.281 15.1 144.659143.6340.000.000.135.0005:59:11
GBP/USD1.511871.51288 10.1 1.513271.50725-0.150.070.125.0005:59:11
AUD/USD1.036521.03715 6.3 1.041051.03600-1.240.590.125.0005:59:13
NZD/USD0.824350.82519 8.4 0.827410.82349-0.970.440.125.0005:59:10
  • #3,445
  • Mar 19, 2013 9:00am Mar 19, 2013 9:00am
Quoting Jamz
Hi Jason, so should I see spreads like this every time a news item goes thru?

EUR/USD1.293351.29396 6.1 1.297071.291490.03-0.160.125.0005:59:13
EUR/JPY123.299123.413 11.4 124.147123.1390.000.000.135.0005:59:13
USD/JPY95.32395.379 5.6 95.75495.0480.000.000.135.0005:59:11
GBP/JPY144.130144.281 15.1 144.659143.6340.000.000.135.0005:59:11
GBP/USD1.511871.51288 10.1 1.513271.50725-0.150.070.125.0005:59:11
[size=4]AUD/USD1.036521.03715...
Hi Jamz,

Each news event is different. Certainly some news events have a greater potential to affect market prices than others, and for these events banks will often widen their spreads because of the greater risk of price swings. On our NDD model, we simply pass on the best bid and ask prices we receive from our liquidity providers at any given moment in time plus our fixed pip markup which acts as a commission. When you see the spreads on our platform widen, it's because the banks quoting prices in the market are widening their spreads.

Since banks widen their spreads during news events, a broker that does not widen its spreads accordingly would have to take on the market risk themselves. Traders using the platform of fixed-spread broker could experience requotes or other trade restrictions affecting how close you can place stop or limit orders.

Jason
  • #3,446
  • Mar 19, 2013 9:11am Mar 19, 2013 9:11am
Quoting Kanzler
Thanks Jason, no inconveniences as I had no positions open at the time - I just wanted to double check that something else wasn't going on.

I do have another question, however, in regard to adding onto positions. Say I have a running short that is well into profit, and I notice a new location below my original entry that I want to add onto my short position from. If price goes above a price I deem the setup to be invalid at, however, I want to close out part of my net position which is equal to what I'd just added - effectively handling...
Hi Kanzler,

Let me recap, just to make sure I follow you. You want to be able to place an order to close out part of your net position at a specified price. This can be done with entry orders.

As an example, suppose you started by shorting 100k EUR/USD at 1.3000. You later decided to short 50k more at 1.2900. You are now short 150k EUR/USD in total, but if the prices rise back up to 1.2950, you want to close out 50k.

The way you do this is by creating an entry order to buy 50k EUR/USD at 1.2950. If this order triggers, it will close out 50k of your short position, leaving you short only 100k EUR/USD. This link has a video on how to create entry orders: http://www.fxcm.com/products-service...b/order-types/

Jason
  • #3,447
  • Mar 19, 2013 9:22am Mar 19, 2013 9:22am
Thanks for these statistics. This flies in the face of the 95% of traders lose money BS I keep hearing. Seems that even 20% of the newbies are having some success. At what point do newbies get pushed to the NDD if they are successful at FXCM? My understanding is that if you win at the dealing desk you get pushed to the NDD to pay higher spreads.

Thanks,
Tony


Quoting Jason Rogers
Hi Plofkip,

...

The bar graph below is from these DailyFX profitability studies.

http://media.dailyfx.com/illustratio..._Picture_3.png


Jason
  • #3,448
  • Mar 19, 2013 9:24am Mar 19, 2013 9:24am
I’ve been watching the latest developments in Cyprus as I’m sure many other traders have been. Over the past year, you have seen FXCM’s director of government affairs Charles Delano and I talk at length about safety of funds after the MF Global and PFG Best situations, and events in Cyprus continue to highlight how important it is. There have been reassurances from brokers about the safety of client funds but a true test would be to request a withdrawal to ensure the bank account holding client funds truly is outside of Cyprus. I hope everything works out in the end for customers to retain their full funds.

The transparency of a broker’s finances, particularly how much excess capital they have on hand, is important to know in events like this to see if they can sustain the type of hit they will take as a result of the bank levy and continue normal business operations. FXCM is a publicly traded company on the NYSE and our financial information is listed on our website http://www.fxcm.com/about/financials-performance/. As of September 30, 2012, FXCM had $230 million in our own net cash available.
  • #3,449
  • Mar 19, 2013 10:38am Mar 19, 2013 10:38am
Quoting tony95
Thanks for these statistics. This flies in the face of the 95% of traders lose money BS I keep hearing. Seems that even 20% of the newbies are having some success. At what point do newbies get pushed to the NDD if they are successful at FXCM? My understanding is that if you win at the dealing desk you get pushed to the NDD to pay higher spreads.

Thanks,
Tony
Hi Tony,

Actually, that's not the case. The reason a trader might be switched to our No Dealing Desk (NDD) forex execution has more to do with certain types of strategies that can make it harder for a dealing desk to manage risk. For example, strategies that trade at a high frequency or scalp the market are least suitable for dealing desk execution. We encourage traders who use those types of strategies to open an account that provides them with No Dealing Desk execution, which is compatible with all trading strategies. On the other hand, a swing trader, who is consistently profitable but holds positions for a longer period of time, does not present the same challenges to our dealing desk in managing risk.

Operating a dealing desk can be riskier than providing No Dealing Desk execution because we (the market maker) are on the other side of your trades. When you are long a currency pair, we are short. When you are short, we are long. Likewise, when you trade profitably, we may experience trading losses. Most dealing desks manage their trading losses by interfering with their client's trading such as re-quoting their orders, delaying their execution, skewing prices, or widening spreads. We do none of that at FXCM. If your trading style exposes us to more risk than we care to manage, we will simply change your execution type to No Dealing Desk, where there are no restrictions on the trading style or strategy used. This is how FXCM can comfortably offer both options without having to resort to the "dealer intervention" that is common at many forex brokers. This link has more info comparing our two execution options: http://www.fxcm.com/advantages/forex...ecution-types/

Welcome to the forum

Jason
  • #3,450
  • Mar 19, 2013 12:19pm Mar 19, 2013 12:19pm
why spread so cheap on xau.usd....
Wooooohooooo or Boooooohooooo
  • #3,451
  • Mar 19, 2013 12:47pm Mar 19, 2013 12:47pm
Quoting Jason Rogers
Hi Kanzler,

Let me recap, just to make sure I follow you. You want to be able to place an order to close out part of your net position at a specified price. This can be done with entry orders.

As an example, suppose you started by shorting 100k EUR/USD at 1.3000. You later decided to short 50k more at 1.2900. You are now short 150k EUR/USD in total, but if the prices rise back up to 1.2950, you want to close out 50k.

The way you do this is by creating an entry order to buy 50k EUR/USD at 1.2950. If this order triggers, it will close out 50k of...
Jason,

Thanks, that's exactly what I wanted to do.

Kanzler
  • #3,452
  • Mar 19, 2013 7:52pm Mar 19, 2013 7:52pm
Hi Jason Rogers,

it has come to my attention that FXCM is cooperating with Barcleys Margin FX. Can you please explain to me what is the nature of your cooperation (are you offering only trading platform or something more)? Thank you for replying.
  • #3,453
  • Mar 20, 2013 4:43am Mar 20, 2013 4:43am
OK, credit where credit's due: I have recently opened an account with FXCM and I have to say that the training videos are fantastic. I am still of the view that technical trading is for people much smarter than me (as well as for people much dumber), but these very accessible videos are great for getting an idea of what those two other groups are talking about.

Today I am going to learn about Fibonacci retracement. That's such a funky name, I have got to try it.

(BTW I am not planning to dump my existing broker for FXCM just yet, but I wanted to broaden my options.)
  • #3,454
  • Mar 20, 2013 6:53am Mar 20, 2013 6:53am
Hi Jason, what timezone are the MT4 and Trading Station daily candlectick close set to?

I think it is 5pm NY close for TS and MT4 GMT+0.

Cheers
  • #3,455
  • Mar 20, 2013 7:34am Mar 20, 2013 7:34am
Quoting Tom81
Hi Jason Rogers,

it has come to my attention that FXCM is cooperating with Barcleys Margin FX. Can you please explain to me what is the nature of your cooperation (are you offering only trading platform or something more)? Thank you for replying.
Hi Tom,

Happy to help. Our UK team wanted to get back to you as soon as possible so they made a post on the Barclays Margin FX thread in response, but to reiterate Barclays Margin FX is a fully disclosed partner of FXCM, which utilizes FXCM’s technology and trading platform. The pricing behind Barclays Margin FX is bespoke. Clients are customers of Barclays Stockbrokers and hold their funds with Barclays. For further detail we encourage you to speak directly to a specialist with Barclays Margin FX, which you can communicate with by emailing [email protected] to arrange a call.

Jason
  • #3,456
  • Mar 20, 2013 9:14am Mar 20, 2013 9:14am
Quoting Plofkip
Today I am going to learn about Fibonacci retracement. That's such a funky name, I have got to try it.
I'm sure this isn't the place to discuss it, but I just watched the FXCM training video on Fibonacci retracement (Lesson 2 on support and resistance) and the funky name isn't even half the story. This is Dan-Brown-meets-Nostradamus for currency traders, Haitian voodoo with a 12th century Renaissance pedigree. I hear they used it to find the new Pope, the chairman of the European Commission and the 2n-1 approach to large prime numbers.

Yes, OK, I'm havin' a laugh but the serious point is that I am very pleased to find such an accessible entrée to this world of technical analysis. I don't know how much FXCM has made charging me a pip on the small non-dealing desk trades I have made to date, but it was a small price to pay for the educational (not to mention the entertainment) value of these videos.

Thank you.

PK
  • #3,457
  • Mar 20, 2013 11:13am Mar 20, 2013 11:13am
Quoting Plofkip
OK, credit where credit's due: I have recently opened an account with FXCM and I have to say that the training videos are fantastic. I am still of the view that technical trading is for people much smarter than me (as well as for people much dumber), but these very accessible videos are great for getting an idea of what those two other groups are talking about.

Today I am going to learn about Fibonacci retracement. That's such a funky name, I have got to try it.

(BTW I am not planning to dump my existing broker for FXCM just yet, but I...
Quoting Plofkip
I'm sure this isn't the place to discuss it, but I just watched the FXCM training video on Fibonacci retracement (Lesson 2 on support and resistance) and the funky name isn't even half the story. This is Dan-Brown-meets-Nostradamus for currency traders, Haitian voodoo with a 12th century Renaissance pedigree. I hear they used it to find the new Pope, the chairman of the European Commission and the 2n-1 approach to large prime numbers.

Yes, OK, I'm havin' a laugh but the serious point is that I am very pleased to find such an accessible entrée...
Hi PK,

I'm glad to hear you been enjoying our training videos on the various technical indicators. Since you're currently learning about Fibonacci retracements, I though you might be interested to my two most recent posts on the DailyFX Signals and Strategies thread showed classic examples of the market finding support at a Fib levels.

In yesterday's post I mentioned how the Euro was trading at the 50% retracement level of the run up since last July. If you pull up a chart from today (shown below), you'll see how the Euro bounced off that level.

http://img62.imageshack.us/img62/673...rocyprusfi.png

In my post today, you can see how crude oil bounced off the 23.6% retracement level of the run up since last December.

Jason
  • #3,458
  • Mar 20, 2013 11:21am Mar 20, 2013 11:21am
Quoting mitch77
Hi Jason, what timezone are the MT4 and Trading Station daily candlectick close set to?

I think it is 5pm NY close for TS and MT4 GMT+0.

Cheers
Hi Mitch,

You are exactly right. Daily candles on the Trading Station begin and end at 5pm New York time, which is the traditionally considered the end of one 24-hour trading day and the start of the next in the global markets. That's because the business day had just ended in New York, and about to begin in the major financial centers of Asia for the next calendar day.

On MT4 we use midnight (00:00) GMT as the beginning and ending for the daily bars, because that means the GMT offset for running EAs on the platform is zero. This does mean, however, that if you are comparing the daily bars on Trading Station and MT4 they will begin and end at different times. Since the US is now on Daylight Savings Time, midnight (00:00) GMT currently corresponds to 8pm New York time.

Jason
  • #3,459
  • Mar 21, 2013 7:20am Mar 21, 2013 7:20am
Jason,

I took the demo you offered, thanks. I was trading and I noticed a bar on the chart dropped below my stop and didn't take me out. This is very bad. However, when I look at the price on the chart versus the market watch window, I noticed that the bid price is about half a pip more in the market watch window. This explains why I was not taken out of my EURUSD position. See the screencast link below.

http://screencast.com/t/xZYhgjRFYw

What is going on here?

Thanks,
Tony
  • #3,460
  • Mar 21, 2013 7:42am Mar 21, 2013 7:42am
Quoting Jason Rogers
... Since you're currently learning about Fibonacci retracements, I though you might be interested to my two most recent posts on the DailyFX Signals and Strategies thread showed classic examples of the market finding support at a Fib levels ...
Thx, Jason. I'll take a look.

PK
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