Level 2 Forex?

[jhaughey]

Hello all,

I'm a relative newcomer to Forex so sorry if this is thread is a bit elementary for this forum... My question: is there any way to see the level 2 order book for the spot currency market, or is it only available on futures contracts traded on the exchanges? I'm just a little confused, as I read some forex analysis websites like 'spotforex.com' who frequently mention the order book entries around the current spot market price; I could be wrong though.... If it is available, which brokers supply it?

thanks in advance

 

[reactor]

Spot FXs are done interbank. There is no central exchange where all the deals go through. The market makers and investment banks post their bid offers on various systems, for example Currenex, FXall, Reuters and Bloomberg.

In regards to order book entries on futures, some people will argue that there are some obvious support and resistance in the books.

 

[jhaughey]

Spot FXs are done interbank. There is no central exchange where all the deals go through. The market makers and investment banks post their bid offers on various systems, for example Currenex, FXall, Reuters and Bloomberg.

In regards to order book entries on futures, some people will argue that there are some obvious support and resistance in the books.

cheers

 

[jhaughey]

I understand... but am I right in thinking there would be a visible order book for currency futures? Level 2 has been stubbornly ingrained in my mind as only a Nasdaq stocks development (as far as availability for the individual punter is concerned) so when I was making general enquiries to a new spreadbet company in Gibraltar: futuresbetting.com, they mentioned they had the order book displayed on their trading platform for most contracts like the Bund, Bobl etc... I know of no other SB company that does this. Would this not be a significant selling point to spreadbetters? all the taxation and CGT stuff still applies.... Sorry to get a bit off topic here and thanks for you replies.

 

[options]

"...they mentioned they had the order book displayed on their trading platform for most contracts like the Bund, Bobl etc... I know of no other SB company that does this. Would this not be a significant selling point to spreadbetters?..."


Where do they get their prices from? If it's their own price. Well, that accounts for nothing.

Because it's such a big world wide market, you cannot hope to follow, (anticipate) all the moves going through. You simply would not get the information in time, as a true L2 screen would give you.

Reading the order book for the futures is an art in itself. For the fx market?...It is neigh on impossible.
It is, imho opinion a followers market.

Having said that. It is predictable to a point... Thanks to Mr Fibonacci. Because it all becomes a self fulfilling prophecy.

If you are drawing the right lines, then 90% of the traders are doing what you are doing. And that has to be a good thing.

If you do find a true L2 screen for the fx market, please let me know!

Regards.

 

[jhaughey]

thanks GJ,

That makes sense about the FX order book, it probably is pretty unique compared to others....

Options,

Futuresbetting are telling me that they display the true market price for all their contracts with the orders surrounding the market price displayed also. Is this an order book (level 2)? I don't know anything... they say they have direct access to CME / LIFFE / CBOT / EUREX etc, show you the price and have a fixed spread around all contracts. let me know what you think. they have a minimum account of 5 grand. They're spreads are tiny. I must be missing something, there's always a catch.

read this article:

http://www.financial-spread-betting.com/Futuresbetting.html


thanks

 

[options]

Sorry to take so long to get back to you JH.
Read the article. And...

"The firm is using the Ubix service (from www.ubitrade.com) to access four futures markets - Liffe, Eurex, CME and Cbot. The full list of markets on offer is available here

The minimum deposit is £10,000 and the company is regulated by the Gibraltar equivalent of the FSA.

Interesting in that they appear to be direct access but in a spread bet wrapper. They state all trades will be placed on the exchange, so no messing with prices or lack of hedging issues."


That is from the article. Nothing wrong with that. But... They are geared towards the futures market. So the L2 bit is easy to sort out. Based in Gib for tax reasons? Hmmm! Any probs and you may have a hard time getting your hard earned back. But hey. I have poker accounts in Gib and the usa. No problems so far.

They cannot have a true L2 screen showing for the forex market. It just does not exist at the moment. (I really do hope I am wrong).

What it seems to be to me is just a dressed up sb company. Outside the tooth less clutches of the fsa at that. And you can open an account with an sb co for a lot less then that over here.

I may be totally wrong about them. I do not like to put anyone down off the cuff so to speak. But if you are new to this, and it seems as though you are; then opening an account with a lot less than 10k would be the better option.

Take care m8.

 

[jhaughey]

cheers options,

You're right, i'm a few months in, learning the ropes so to speak, and licking my wounds after my first account went belly up due to inexperience (with a an SB company). grass is greener with someone else and all that.... Thanks for your help

JH

 

[jmreeve]

I would be happy with reliable level1 FX data.

Is there any platform that gives a reliable global best bid/offer or similar benchmark spot quote?