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Anyone here into FOREX?

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Hey guys,

Iceland's interest rates have been mentioned a few times on this thread and it looks like there is a way to trade their currency.

I found this article on Bloomberg today...

http://www.bloomberg.com/apps/news?pid=20601083&sid=aFt1GOMvOpSg&refer=currency

I wonder how we would get access to that.

You probably have to be institutional, but damn...that interest rate would be quite the carry trade. :cool:

I wonder if you can open a savings account there. After seeing this, swiss accounts are sooo last decade :p ;)
 
Yes, I have been well aware of the Icelandic interest rate, and actually it has been mentioned several times throughout this thread - probably before your time. ;) If there's a way to trade it, I'd be game! :D
 
OceanView said:
I can't go back that far on the news reports but there was about 6 or 7 news flashes that had durable goods info, it didn't say -0.1 but it had 2.5 or something like that. There were many items with many different numbers.
That is why I was confused.
How did Tradethenews report it today? Was it just one line that had -0.1% ?
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Nothing confusing about that.. you just didn't know that there were 2 reports today.. the Durable Goods Orders report month to month.. and the *Core* Durable Goods Orders report (ex-transportation) month to month. Durable Goods orders was expected at 3% but it came out at 2.5%, and the core report was expected at 1.8% but came out at -0.1%.

So *both* reports came out lower than expected.. that's not USD Positive. :)

Nathan, I received the cmc email as well.. funny their email stated "Please except our apology" .. ok.. I won't accept it then :p

Shard, do US forex firms levy taxes on profits? If you reside in Canada, you shouldn't have to pay any, right? Or maybe I'm wrong.
 
Music_Producer said:
Nathan, I received the cmc email as well.. funny their email stated "Please except our apology" .. ok.. I won't accept it then :p
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Haha! Well, obviously basic English grammar and spelling are not their strong suits - they best stick with forex trading I guess! ;) :D

Music_Producer said:
Shard, do US forex firms levy taxes on profits? If you reside in Canada, you shouldn't have to pay any, right? Or maybe I'm wrong.
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Yes, in Canada I do not have to pay any taxes, but with the US, well, I might - the tax laws seem a little cloudy and ambiguous, at least on the Canadian side with respect to "foreign income", so I am not sure to be honest. And I would rather avoid a walk down that dark path if possible. ;) It's simpler this way - my taxes are complicated enough as it is, what with flow-through entities, limited partnerships, income trusts and the like. :cool:
 
Music_Producer said:
Nothing confusing about that.. you just didn't know that there were 2 reports today.. the Durable Goods Orders report month to month.. and the *Core* Durable Goods Orders report (ex-transportation) month to month. Durable Goods orders was expected at 3% but it came out at 2.5%, and the core report was expected at 1.8% but came out at -0.1%.

So *both* reports came out lower than expected.. that's not USD Positive. :)

Nathan, I received the cmc email as well.. funny their email stated "Please except our apology" .. ok.. I won't accept it then :p

Shard, do US forex firms levy taxes on profits? If you reside in Canada, you shouldn't have to pay any, right? Or maybe I'm wrong.
Click to expand...

OK, I see my mistake now.
I didn't realize there were 2 that were so closely worded. :mad:

Next time I will have my coffee before I start. :rolleyes:

What are your thoughts on the NZD ? Should I be trading the NZD/USD or AUD/NZD ?
 
OceanView said:
OK, I see my mistake now.
I didn't realize there were 2 that were so closely worded. :mad:

Next time I will have my coffee before I start. :rolleyes:

What are your thoughts on the NZD ? Should I be trading the NZD/USD or AUD/NZD ?
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Haha, I had a beer last night while trading the uk report.. it took the stress away :p

I'll be trading the nzd/usd today.. you can trade either one of them but i prefer the nzd/usd.
 
OceanView said:
OandA had a 20 point spread. How the heck can anyone make money through them?
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You can't.. that's why I was a little surprised when you said that you were able to make money using my news strategy with Oanda. Probably on the demo, but never on the real. Oanda sucks for news trading.

Almost all brokers suck for news trading.. the ones with fixed spreads will either never execute your order.. or will give you 'slippage' i.e. if you press 'buy' when nzd/usd was at 0.7100.. they will execute it at 0.7120 or even higher. So while Oanda gives you instant execution they inflate the spreads.

The only way to news trade is to switch to an ECN like Currenex or FXAll.. but you need a minimum of 50-75 k to start. Although nathan mentioned that 25 k can get you a currenex account with ODL..
 
I just stayed out of NZD and Im glad I did. It kept gapping up and down 20 pips, like 3-4 times...Ive never seen that happen before.

Hopefully tomorrow will be better. On friday, we have US PCE and CAD GDP coming out at the same time...which one are you guys going to trade?

Im thinking the Canadian report might be better because their trades are a lot smoother than the US reports lately...although Im not sure what pair to trade because USD/CAD is out of the question.
 
Music_Producer said:
You can't.. that's why I was a little surprised when you said that you were able to make money using my news strategy with Oanda. Probably on the demo, but never on the real. Oanda sucks for news trading.

Almost all brokers suck for news trading.. the ones with fixed spreads will either never execute your order.. or will give you 'slippage' i.e. if you press 'buy' when nzd/usd was at 0.7100.. they will execute it at 0.7120 or even higher. So while Oanda gives you instant execution they inflate the spreads.

The only way to news trade is to switch to an ECN like Currenex or FXAll.. but you need a minimum of 50-75 k to start. Although nathan mentioned that 25 k can get you a currenex account with ODL..
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It must have been beginer's luck or something :p

What does ECN and ODL stand for? I'm still a noob :confused:
 
OceanView said:
It must have been beginer's luck or something :p

What does ECN and ODL stand for? I'm still a noob :confused:
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Haha, no it's because trading on a demo account is completely different than trading on a real account. I dare you to open a trade (based on whatever technical strategy) of 100,000 units.. and set a stop loss 40-60 pips away. The minute it starts dropping towards your stop loss.. you'll be sweating away and will most probably close your position at a loss.

If not, you will probably remove the stop loss and let it sink further.. sometimes that leads to a complete wipe-out. On a demo there's no such stress.. I could open a 10 million unit position (buy or sell) and not care about it. If i make a profit, i'll be thinking 'Oh wow, this is so easy' but if i make a loss i won't care.. because its not real money.

ODL is simply a broker.. they offer various platforms such as Currenex, FXall, etc. ECN is electronic communications network. Basically ECN platforms offer pip spreads like 0 or 1.. there are no 're-quotes' because there is no dealing desk.

Market makers are brokers such as Oanda, CMC Markets, etc.. when we place a trade.. it has to pass through them, and onward to the interbank market. Market makers have the ability to re-quote, trade against us, etc

However, I have experienced slippage on an ECN (MB Trading) Of course, this *could* be because i was trying out a mini account.. but nevertheless.. I never signed up with MB trading.
 
So for Thursday morning trade, it looks like 3 items will be announced simultaneously. Of these which numbers will have the most affect on the USD?
Which should I base my trading decision on or should I stay out if the one of the announcement is better than expected and one of the others is worse than expected?

1. GDP Annualized q/q (r)
2. GDP Deflator Annualized q/q (r)
3. Unemployment Claims

EDIT: Thanks for the explanation MP!
 
I would say that the GDP report is more important.. especially right now since everyone is watching the US economy .. with its dire factory orders report, lagging home sales, etc.. GDP should be a good indicator. Its expected at 2.2% (not the gdp deflator.. just the gdp) Unemployment report is relatively less important compared to gdp.. if gdp doesn't deviate though.. and unemployment rate deviates by a huge margin.. then it might affect the markets.

I hope GDP deviates quite a bit so we can have a good trade. There's also te NZD trade later on in the evening.

Btw, when I talk about the differences between demo and real trading.. I know I usually portray the worst case scenario.. so don't think I'm discouraging anyone from trying out their strategies from a demo acct to a real account. I'm just offering a little bit of real world experience, and I would rather caution you all against trading recklessly so you can preserve your funds.

I wouldn't act like a subprime mortgage lender :p You know, the type that goes "Oh yeah yeah, go ahead.. get this loan.. your rate will be fixed at 8% for two years.. and then you can always sell your house (yeah right sucker.. you'll be paying 14% after 2 years buhahahaha)" Lol.

Regarding that, I feel bad for the folks who got those crazy loans.. but what the hell were they thinking?? I think both the lenders AND the borrowers are at fault here.. the borrowers even more so .. for speculating wildly. For god's sake.. it's your house we're talking about!
 
I got 5 pips on US GDP...my response time went up to like 2118ms about 5 seconds before the report....at least I got in and out though.
 
nhallmark said:
I got 5 pips on US GDP...my response time went up to like 2118ms about 5 seconds before the report....at least I got in and out though.
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Ouch! If I see my response time shoot up to 700 ms or so .. about a few seconds before a trade.. I just let it go.. I never know if I'm going to get a re-quote or slippage :eek: Nathan, you have guts!
 
How did you guys do on the GDP?

Got 9 pips out of the GDP report using OandA.
Struggling with the platform still.

EDIT: Slow at posting too!
 
This one seems like it took a little time to digest.. gbp/usd went down by 25-30 more pips after a few minutes.
 
yeah..I wish I would have held on. oh well.

Hey, we should have our house sold in the next 3 months, so when I get that equity, Im going to try out that currenex thing with ODL(on a demo first, of course) and if it doesnt work I can always pull my money out, but if it does work then damn...we might have found a long term solution even though the barrier to entry is quite high.

Either way, I'll let you guys know how it goes when I do it.
 
nhallmark said:
yeah..I wish I would have held on. oh well.

Hey, we should have our house sold in the next 3 months, so when I get that equity, Im going to try out that currenex thing with ODL(on a demo first, of course) and if it doesnt work I can always pull my money out, but if it does work then damn...we might have found a long term solution even though the barrier to entry is quite high.

Either way, I'll let you guys know how it goes when I do it.
Click to expand...

Please do - I honestly have no issues with funding a $25K account as long as it's worth it. I just dumped $25K into one stock today actually, so if better growth opportunities exist elsewhere (i.e. with ODL) then I'll easily shift my funds appropriately. :cool:

As for this morning, I made 10 pips as well on shorting the EURUSD. For some reason I just didn't feel good about the GBPUSD this morning - gotta go with your gut sometimes. ;) :cool:

I'm at work though, so no more trading for me until tomrorow. :( Good luck to everyone else though! :D
 
nhallmark said:
yeah..I wish I would have held on. oh well.

Hey, we should have our house sold in the next 3 months, so when I get that equity, Im going to try out that currenex thing with ODL(on a demo first, of course) and if it doesnt work I can always pull my money out, but if it does work then damn...we might have found a long term solution even though the barrier to entry is quite high.

Either way, I'll let you guys know how it goes when I do it.
Click to expand...


I hope currenex is the answer. There must be an easier way to trade.
Let us know how it goes.

Oh and good luck on selling the house.
 
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