I'm often asked about how a person can move from a season of deconstruction regarding the faith--a season of doubt, questioning, and searching--into a season of reconstruction, a season of renewed conviction, faith, and spiritual vitality. Yesterday I wrote about how the theologian Stanley Hauerwas helped me pull out of a season of deconstruction. I observed that Hauerwas is unapologetically and aggressively Christian. I found that confidence and combativeness helpful during my season of wavering and doubt. To be clear, combativeness isn't a good in itself. There are lots of combative Christians in the culture wars who I strongly disagree with. You can be combative about the wrong things. In case you have any kind of concerns relating to where by as well as the best way to make use of Umarkets, you are able to email us in our own web-page. But Hauerwas is someone who I think is combative about the right things, and is confident that Jesus and the church are the salvation of the world. Anyway, when people are going through a season of deconstruction they often drift toward Christian voices that help them doubt better. From personal experience, let me just say that's a bad idea. If all you ever read are voices saying "Keep doubting! Keep doubting!" well, guess what, you'll keep doubting. And eventually those doubts are going to drown you. So my advice, if you're wanting to move out of a season of deconstruction, is to start reading confident and unapologetic Christian voices. Hauerwas is a good choice. I also read Bonhoeffer, Flannery O'Connor, Dorothy Day, William Stringfellow, Fleming Rutledge, Oscar Romero, Jean Vanier, Augustine, Eugene Peterson. The list goes on and on. And perhaps best of all, read the Gospels according to Matthew, Mark, Luke and John. Spend some time with Jesus.
How To Trade In Foreign Exchange Market
10,000 per year if you do 500 trades a year. 5 trillion per day. However, let’s be realistic — how much liquidity do you really need? The average futures contract trades about 50-100 thousand contracts per day and total futures and options trading is on the order of 1 million contracts per day. Open interest, meaning positions not closed, in CME Forex futures was 2.8 million contracts on November 15, 2016. In practice, the futures market offers sufficient liquidity for the average trader. Are You Really Trading with the Big Boys? As for “trading with the big boys,” let’s investigate whether the claims of the spot brokerage industry stand up to scrutiny. First, is it really possible that you are being allowed onto the same playing field as Citibank, JPMorgan Chase, Deutsche Bank, Barclays, and the other powerhouses of FX trading? 5 million in EUR/USD, USD/CHF, and USD/JPY. Size matters. Just as a wholesaler will not sell you a dozen plastic buckets for the same per-piece price he gives Walmart, which orders twelve million, it is not efficient for Citibank to do business with the small retail trader. It is also not profitable.
10. This is a key reason Citibank delayed so long in setting up a retail spot FX brokerage boutique. So how do the retail spot brokerages do it? Easy. As noted above, they do not actually give you the true spot price - in practice they are adding on an extra pip or two or three. 10 on your trade. Other techniques to improve profitability include “bundling” a group of trades at or near the same level to offset them in the market all at once at a somewhat better price. Or, if the broker thinks it has a really good grip on the near-term direction of the market, it may not offset your trade at all. 10,000 worth of AUD, but never actually goes out and does the other side (buying the AUD from another party). If you have a close stop and the trade goes against you, you will be exiting the trade with a loss. The broker did not have to do anything, after starting out with a two-point advantage to begin with.
So what if you pay four points? 40, about double what you would pay as a straight commission to a futures broker. Moreover, it may be more than that. The farther away you are from the real wholesalers, the market-making banks, the more points you can expect to have added to the prices you see. Some spot brokers do indeed offer you the same spot prices as seen to be on the “professional” trading quote screen, but beware - these prices are already marked up by the big banks in the first place. From the point of view of the real professional trading banks, any retail broker is not an equal party. It is a customer, not a fellow-market-maker, and it gets a mark-up. The key difference between the real spot market and the retail brokers is that in the real spot market, the big players are market-makers. To be a market-maker means you are always ready to state a bid and an offer to your counterparty. It is that simple.
Even if you are General Motors, Sony, or IBM, you still pay a price mark-up on FX trades to the dealing bank because the dealing bank is a market-maker and you are not. Being a market-maker entails tremendous risk. When you give a two-way quote, you do not know ahead of time which side your counterparty is going to take. He may be selling exactly when you want to be selling, too. The last thing you want is someone to push you into buying something that is falling. But that is how market-making works. Market-making takes gutsy traders - and lots of capital. It is important to understand this aspect of market structure because the futures market builds on it to create a level playing field. In futures, for every buyer there is a seller. You know that the price is a true market price because if you are buying, some other real party is selling.
It is true that futures brokers may add an extra point (and only one point) to the exchange’s own market makers, but that does not take away from the key difference between spot and futures. In futures, the broker is a middleman with no interest in the outcome of the trade. In the spot market, the big players have an intense interest in the outcome of the trade because they are taking positions, even if only for a nanosecond. Spot retail brokers also have an intense interest in the outcome of the trade if they are not offsetting every buy immediately with an offsetting sale. To an experienced trader in either the spot or futures market, spot retail brokers’ claims that the little guy can trade in the same game as the big players is offensive. The spot market is tiered and the retail trader is the bottom tier. To anyone with a grain of experience, the claim is patently not true — it is marketing hype. Note that the US spot retail brokers are regulated by the Commodity Futures Trading Commission, which disallows exaggerated sales pitches.
Evidently the CFTC is not offended by the claim that the retail traders is playing on the same field as the big boys. Futures people won’t lie to you about anything in trading being ‘easy.’ These charlatans who put on expensive FX seminars are selling garbage and don’t even teach good rules of trading. But most of all, it’s a crime to say trading is easy. Melamed agrees that in futures, you know the price is real because you know that there is a seller on the other side if you are a buyer and vice versa. And every party to the trade gets the same price. 1 million trade as the guy doing a one-lot from his den. However, Melamed goes on, there is another real cost to trading in spot - the infamous rollover cost, which has to be calculated and added every day in the spot market but is already built-in to futures contracts.
Mini Forex Trading
Again, everyone is futures trading gets the same price. This may not be the case in rolling over spot contracts. Here is how it works: A spot trade is for delivery in two business days. When you buy on Monday, you would have to make payment in one currency and receive payment in the other currency on Wednesday if you were actually going to take delivery. When you want to hold a position past the day of the trade, there is a price. And it is not a universally known price. The broker has a lot of latitude in assigning the cost to you. In contrast, futures are contracts for delivery at a date in the future, starting generally three months from now and narrowing down to two days by the time the contract matures. Futures were designed for hedgers and speculators with the full knowledge that speculators would be adding much-needed liquidity. There is no additional rollover charge for holding a position past the trade date because the contract is already designed with a longer holding window.
When a futures contract is new, that is, has become the “front month” that is the main focus of trading attention, it has three months to run. Let’s say you are holding US dollars and using them to buy Australian dollars. If you like formulas, think of it as the principal plus interest in one currency needing to be equal to the principal plus interest in the other. Since the interest rate is a given and the spot rate is a given, the only thing that can change is the discount or premium from spot that equilibrates the principal plus interest. In fact, a forward contract in the professional market for the identical delivery date will be the same 2% discount from spot. Arbitrageurs make sure that the equivalence between the forward and future markets is well-nigh perfect, too. So, a futures contract already incorporates the “cost of carry,” meaning the interest rate differential.
The futures market has only four contracts per year, closing in March, June, September, and December. The cost of carry is already built in to the prices you see and therefore you have no daily re-calculation nightmare if you want to hold for an extra day. The cost is fixed upfront. If you are buying a currency with a higher interest rate, the futures price is at a discount. If you are buying a currency with a lower interest rate, you are the one earning higher interest, and therefore the other currency is selling at a premium to the spot price. Now let’s shift to the spot market. You do a trade on a Monday but you do not close it out on Monday. You carry it over to Tuesday. You have to pay, or earn, one day’s worth of the interest differential. This sounds easy enough - apply the one-day interest rate differential.
However, it is not easy at all. The cash or overnight market is another one of those professional markets that is available to the market-makers at the rates you see quoted in the newspapers, like the fed funds rate. 100,000 worth of fed funds available to non-banks for your trade. Instead, the rate that is available to the broker acting on your behalf is marked up from the fed funds rate, or it is a one-week rate, or some other rate. And you do not know what that rate is. Moreover, you cannot deduce it from published rate data, because each borrower/lender in the money markets gets a rate specific to the bank’s private credit rating of that broker. To make matters more complicated, the one-day rate is not simply one-seventh of the one-week rate, or one-thirtieth of the 30-day rate, or any other easy formula. In many cases, the overnight rate is higher than the one-week or one-month rate specifically to discourage exchange rate speculation.
And number of central banks, such as the Swiss National Bank, maintain rates with that structure or impose it suddenly in times of FX market turmoil. One hedge fund went under in the late 1990’s because the Bank of Greece suddenly applied a 400% overnight rate. Again, it may not happen very often, but it does happen. So how do you know if the rollover charges applied to your account are true and fair? You do not. They may be true and fair, or they may not. This leads to a final point. In futures, every single broker and data vendor has the same open-high-low-close price points and over the course of the day, the same bid-offer. Finally, every futures trade is guaranteed by the exchange. If you are using a spot broker, you have no guarantee beyond its own capital base. However, in futures, every trade is guaranteed and if your broker fails, the exchange steps in to make every trader whole. When Refco failed in 2005, those who had futures trading accounts saw their accounts moved to another broker and their margin amounts were safe as well as any open trades. But spot Forex traders at the Refco spot brokerage lost everything. So, if futures are so superior in so many ways to spot retail, why does it languish? Again, the ease of starting out, the leverage, and the required capital are still much better at spot FX than they are at the retail futures market. 1. The futures market was invented recently and the spot market is the real market. 2. Spot trading has no transaction costs and futures have high transaction costs. 3. The cost of carry is known ahead in futures. 4. The cost of carry is transparent in spot FX. 5. Every trade in guaranteed by the exchange in futures and you cannot lose if your broker goes bankrupt.
A few terms are worth learning in this regard.
Free charting software packages are useless, particularly those provided by the brokers themselves, they are hard to use, offer limited viewing options, and have discrepancies, oftentimes what they show it's far different from the real market. Particularly if you use a lot of charting technical analysis techniques, you cannot afford a single mistake! So a premium charting software is well worth it! Those new to forex (fx) trading often get overwhelmed by the number of currency trading system software packages available to choose from. There are thousands of features available, and newcomers often wonder whether they need all those extra bells and whistles. A few terms are worth learning in this regard. A forex feed is a continuous stream of quotes for any currency pair from data providers. It is used by a charting package to draw charts which are being constantly updated. We can apply technical indicators ( i.e. MACD, Stochastic, RSI, Bollinger Bands, etc…) in charting packages for generating Buy or Sell signals, which is called technical analysis.
You never know when you will have power off.
A currency trading software on the other hand, continually updates the quotes for a given currency pair, and allows us to put buy or sell orders in various ways ( i.e. market orders, limit orders, stop loss orders etc.). It is important that the software package we choose must not lag behind the actual worldwide market rates. Forex traders have to learn the art of using technical analysis charts, and based on their criteria, determine the exact points of entry and exit for any trade. In many instances, traders also use economic news that are known to influence currency pairs to make these decisions. Some currency trading software packages contain technical charts as well as a ‘news squawk box or links to websites and pages that deliver currency related news. Finally, the currency trading software that you choose might have software bugs or slow down your computer. In some instances, they have been known to crash the computer. If this happens at a very critical moment in your day trading, particularly when economic announcements are being released, it might mean that you can miss some vital currency movements, or worse yet, lose money. Be prepared for outages. We recommend that you have your brokers phone number and server address written down on a piece of paper and stick it to your computer. You never know when you will have power off. It is also wise to have your account number and password written down on paper in case your software or computer break down for any reason. You need to be able to contact the trading support to exit your trade or any other help. It pays to know your software well. Spend time before you make your final decision before you buy it.
All trades are done with the 1 Minute Chart and position closed in less than 15 minutes! Jack Johnson, Fap Turbo so passionate with Forex that he test and retest his trading strategies over numerous years until he perfected the system. He only trades with the one minute chart on all currencies pair. Systems today restrict you to a few currencies pair but 1 Min Forex System, is able to trade on ALL and ANY Currency Pairs. Thus giving you ample trade opportunities. Having trained under an experienced trader, Johnson has mastered the art of what many traders greatest fear is the fear of making money in the forex market. With proper money management and tight stop loss, Johnson teaches the way to make money through the 1 min forex chart. You heard it right, ONE MIN FOREX CHART! 1 min Forex System, as the name suggest, we trade only with 1 minute chart, any currency pairs, no complicated indicators, no hype just pure impartation of knowledge and calculated way of making pips.
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Topic title: Trading Forex With Futures
Topic covered: forex price, forex spot trading, fx broker, instaforex, trading de forex
