Rhody Trader
Senior member
- Messages
- 2,620
- Likes
- 266
The forex market is dominated by the inter-bank arena, with futures being only a fractional share of the volume - and quite thin in some pairs. In other words, futures are not the driver, but rather the passenger, and as such will generally be a little slower in getting information.
ES is a derivative and tends to lead stocks.... anyway point taken, best to go with the spot then
DionysusToast
Legendary member
- Messages
- 5,965
- Likes
- 1,501
Tape reading does work on currency futures - I know someone that uses it on the 6E.
It doesn't really matter in these markets which is the tail and which is the dog from this perspective all futures markets can be pushed around in the short term.
From the perspective of arbitrage traders stepping in at predictable points - isn't this a benefit ?
It doesn't really matter in these markets which is the tail and which is the dog from this perspective all futures markets can be pushed around in the short term.
From the perspective of arbitrage traders stepping in at predictable points - isn't this a benefit ?
But the FX markets are not centralized so how would you be able to tape read at all since you cannot see the entire market's order flow?
DionysusToast
Legendary member
- Messages
- 5,965
- Likes
- 1,501
SanMiguel
http://www.cmegroup.com/trading/fx/
6E is a futures contract on the CME, so you get full depth and T&S.
DT
http://www.cmegroup.com/trading/fx/
6E is a futures contract on the CME, so you get full depth and T&S.
DT
Thanks.
Ok - so it's full depth for that particular future contract. Any ideas on how it's affected by the FX market as a whole? For example, much of the FX trade isn't going to go through the futures...not that it might matter much if you're trading 1 contract and basing your trades off that I suppose.
BTW - is time and sales the history of executions?
Different to the order book, which just shows the current orders above and below the current price?
DionysusToast
Legendary member
- Messages
- 5,965
- Likes
- 1,501
Most futures markets are derivatives, which you can take to mean the price is generally derived from that of something else - like a commodity, or a stock index.
If the underlying and the derivative get too far out of line, then arbitrage traders will come in and trade the difference away. So - the FX and the futures will be kept generally in line but futures markets are still markets in their own right and can be pushed around by big players in the short term. The way that FX impacts the FX futures is something I've never studied but I am sure some benefits would come of such studies.
Although it may be sacrilege - one guy I know recommends tape reading the futures and trading the forex for those with smaller accounts. I've never done it, just heard someone recommend it.
Finally - yes - Time & Sales is just history of executions.
If the underlying and the derivative get too far out of line, then arbitrage traders will come in and trade the difference away. So - the FX and the futures will be kept generally in line but futures markets are still markets in their own right and can be pushed around by big players in the short term. The way that FX impacts the FX futures is something I've never studied but I am sure some benefits would come of such studies.
Although it may be sacrilege - one guy I know recommends tape reading the futures and trading the forex for those with smaller accounts. I've never done it, just heard someone recommend it.
Finally - yes - Time & Sales is just history of executions.
