NexusFi: Find Your Edge


Home Menu

 





Newbie Question about Forex


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one jra_020883 with 2 posts (0 thanks)
    2. looks_two wh with 1 posts (0 thanks)
    3. looks_3 CTGUY with 1 posts (0 thanks)
    4. looks_4 emini_Holy_Grail with 1 posts (0 thanks)
    1. trending_up 4,001 views
    2. thumb_up 0 thanks given
    3. group 4 followers
    1. forum 5 posts
    2. attach_file 0 attachments




 
Search this Thread

Newbie Question about Forex

  #1 (permalink)
 
jra_020883's Avatar
 jra_020883 
South Shore, KY
 
Experience: Intermediate
Platform: NinjaTrader
Posts: 10 since Dec 2009
Thanks Given: 1
Thanks Received: 1

Dear Traders,

I'm a Newbie and need some help understanding this futures vs forex question that keeps coming up. I'm reading on these forex sites about how trading forex is better because there's no commission, but the way I understand Spread is that a spread of 3 pips is like $30, which is a lot more than the average commission rate. If every trade on a forex market cost the trader $30 or more, why would anyone want to trade forex? Thanks.

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
NexusFi Journal Challenge - April 2024
Feedback and Announcements
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Deepmoney LLM
Elite Quantitative GenAI/LLM
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
36 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
The Program
20 thanks
GFIs1 1 DAX trade per day journal
19 thanks
  #2 (permalink)
 emini_Holy_Grail 
Dallas,TX
 
Experience: Intermediate
Platform: NinjaTrader, OpenQuant
Broker: Zaner/Zen Fire
Trading: ES,6E,6B,GC,CL
Posts: 597 since Nov 2009
Thanks Given: 176
Thanks Received: 126

jra - you may get quick answers from forex forums, One of the best ones are Forex Factory, Forex-TSD

Reply With Quote
  #3 (permalink)
 
jra_020883's Avatar
 jra_020883 
South Shore, KY
 
Experience: Intermediate
Platform: NinjaTrader
Posts: 10 since Dec 2009
Thanks Given: 1
Thanks Received: 1


Thanks, I know this is more of a futures forum, but I've been trying to find an answer to that question for a while now. I've been researching Forex a lot, am very interested in it, but I've never really found a satisfactory answer to the question of why a trader would pay the crazy spread that forex brokers want.

Started this thread Reply With Quote
  #4 (permalink)
 
wh's Avatar
 wh 
Neubrandenburg, Germany
 
Experience: Advanced
Platform: R
Trading: Stocks
Posts: 538 since Jun 2009
Thanks Given: 298
Thanks Received: 512

the key is the
Diversification in Forex trading with a cross pair like EurUsd / GbpUsd.


Perhaps this link help you: Understanding the risks in Forex trading | GoLearnForex

Causality is the relationship between an event (the cause) and a second event (the effect), where the second event is a consequence of the first.
Reply With Quote
  #5 (permalink)
 
Pava's Avatar
 Pava 
Studio City CA
 
Experience: Beginner
Platform: ninjatrader
Posts: 45 since Jan 2010
Thanks Given: 0
Thanks Received: 10

I am new to ninjatrader...is there a way to get rid of all the non-useful indicators that come with the program?...I like to work with few indicators in my indicator window...

Reply With Quote
  #6 (permalink)
CTGUY
Brentwood, Tennessee
 
Posts: 39 since Mar 2010
Thanks Given: 171
Thanks Received: 25


jra_020883 View Post
Dear Traders,

I'm a Newbie and need some help understanding this futures vs forex question that keeps coming up. I'm reading on these forex sites about how trading forex is better because there's no commission, but the way I understand Spread is that a spread of 3 pips is like $30, which is a lot more than the average commission rate. If every trade on a forex market cost the trader $30 or more, why would anyone want to trade forex? Thanks.

The spread varies depending on the broker. For example, the spread of 3 pips if you were using a standard lot does come close to $30 but using standard lots means that if you make 10 pips, you make $100.

If you were trading mini lots, your 3 pip spread equals $3 and if you were trading micro lots, your 3 pips spread equals $0.30.

You can do research for spread definitions and trust me, they should not worry you.

Reply With Quote




Last Updated on March 8, 2010


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts