Forex

Why are the spreads so high? It's never been this high at this time!

Yes, I wonder too, since they supposedly have the best spreads with the new non-dealing desk model. (NOT)

I have accounts with FXCM, CMC Markets and EFX Group (MB Trading).

CMC is a Dealing Desk (fixed spread) and EFX is an Non-Dealing Desk ECN with commission (they don't take it out of the spread like FXCM)

USD/JPY FXCM 5.5 pips EFX 1 pip plus 1 pip commission
AUD/JPY FXCM 15.0 pips EFX 4 pips plus commission
GBP/JPY FXCM 14.8 pips EFX 6 pips plus commission

commission is $1 per $10,000 lot on the base in USD so it is probably x2 for GBP/JPY
and x 0.9 for AUD/JPY

Doesn't look like FXCM is a true Non-Dealing Desk to me (and I doubt this post will see the light of the NY Open)

Attachment shows screen shot of both trade platforms running together. You may have to zoom to 200% to see it better.

Ugly spreads by FXCM on my platform I got

USD/JPY 3 pips
AUD/JPY 6 pips
GBP/JPY 7 pips

3 accounts is enough. When the commission is embedded in the spread, you don't know how much you are paying. On USD/JPY one mini lot is $1 ($1 = 1 pip on a mini)

Also with FXCM, their quote is always a pip or 2 or 3 lower than EFX Guess that this makes it possible for them to buy or sell below market and cover above. Now that's a money maker and certainly lowers risk for them.

On a normal day, which today is not, you can watch the spread actually go to zero. I have even seen it cross to the bid higher than the ask. But that only last for the blink of an eye.

I'm focusing on shorts again. Don't see this getting better any time soon.

IMHO I don't think we'll see this pair turn around for another year or so

I'm not too certain about the pair not getting better for that long of a time...Terri Belkas posted some interesting facts on when the majority of sub-prime mortgages were due and many fell around this time to early summer,creating extra stress on financial institutions.

Then things ease off a bit during summer and get hit again a bit in the fall. But hey, the markets will do what the markets will do....

I hope you/they are right, but my big concern is with the UK lagging 6 months behind the US that puts us out to September before they feel the effects that we're feeling right now. That timing would line up with Terri' assessment. However, we're not out of the woods yet, so how can we predict the end for the UK when we haven't seen our crisis averted? I'm looking towards early 2009 before we see a tapering off and maybe Q2 of 2009 before we see the trend turn around.

I'm still here! The trading is absolutely wonderful. Too many things to cover, but I was able to profit. Rode the short, down to 194 for a better trade and made up all losses. What a ride. I guess this is no typical capitulation. Whatever happens this week should either provide the bottom.... or signal that the entire financial system is insolvent. The question now is: WHO WANTS TO FIGHT THE FED?

This should be a traders market, and everyone should be ready to hedge or reverse at a moments notice. The wires are full of crazy ideas and inventions of interventions this morning. Should be a phenomenal week! The 189 targets are still on the table, but we should expect that this will be the beginning of the end of the current trend, and a correction will ensue. So many divergences that will eventually pan out. I am noticing the 60 min RSI forming a declining wedge pattern that still has not made new lows.

Rahul ur genius man

The retails are utterly retarded!

GBPUSD
2.01784
-1.47
40%
Bullish

USDJPY
96.638
2.17
68%
Bearish

USDJPY - The ratio of long to short positions in the USDJPY stands at 2.17 as nearly 68% of traders are long. Yesterday, the ratio was at 2.84 as 74% of open positions were long. In detail, long positions are 15.0% lower than yesterday and 19.6% stronger since last week. Short positions are 11.3% higher than yesterday and 17.4% weaker since last week. Open interest is 8.2% weaker than yesterday and 16.6% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.

I think that could be one of the signals to look for for a bottom in the USD and carry trades.as once they flip short