Foreign Exchange Auction

http://twitter.com/forex_in_world/status/1305237167044792320HLHB Bid-Catcher Machine Replace (September 7 – 11) https://t.co/eAnA8kbr1j#forexsignals #forextrading #donaldtrump— FOREX IN WORLD (@forex_in_world) September 13, 2020

http://twitter.com/forex_in_world/status/1305237167044792320HLHB Bid-Catcher Machine Replace (September 7 – 11) https://t.co/eAnA8kbr1j#forexsignals #forextrading #donaldtrump— FOREX IN WORLD (@forex_in_world) September 13, 2020 submitted by Red-its to forextweet [link] [comments]

http://twitter.com/forex_in_world/status/1305244813302923268HLHB Bid-Catcher Machine Replace (September 7 – 11) https://t.co/V6QptqcLx1— FOREX IN WORLD (@forex_in_world) September 13, 2020

http://twitter.com/forex_in_world/status/1305244813302923268HLHB Bid-Catcher Machine Replace (September 7 – 11) https://t.co/V6QptqcLx1— FOREX IN WORLD (@forex_in_world) September 13, 2020 submitted by Red-its to forextweet [link] [comments]

[World] - China omits US dollar from forex trading fee waivers in bid to bolster yuan

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[World] - China omits US dollar from forex trading fee waivers in bid to bolster yuan | South China Morning Post

[World] - China omits US dollar from forex trading fee waivers in bid to bolster yuan | South China Morning Post submitted by AutoNewspaperAdmin to AutoNewspaper [link] [comments]

FOREX bid/ask

FOREX bid/ask
Hi guys,
I am studying the first chapter from Hull's Options, Futures and Other Derivatives and I have a question regarding bid and ask on forex - See pics attached

I understand that the quote; USD/GBP trading at x, means that you need x GBP to buy 1 USD, as USD is the base currency. Given that, shouldn't the underlined sentences in the picture, be in GBP instead of USD ? i.e. As the bid is 1.5541, shouldn't that mean the bank is prepared to buy USD at the rate of 1.5541GBP? What am i missing?
It might be a trivial question but I am completely new to finance.

Thanks for the help!
https://preview.redd.it/41av4uyqt8951.png?width=1232&format=png&auto=webp&s=ac1e59287c7b97ca3ce6f551ccd3d06a9bac85d2
submitted by 022053 to financestudents [link] [comments]

http://twitter.com/forex_in_world/status/1279948887680339968USD/JPY tracks probability barometers to procure the bids above 107.00 https://t.co/EznYOGrLI6— FOREX IN WORLD (@forex_in_world) July 6, 2020

http://twitter.com/forex_in_world/status/1279948887680339968USD/JPY tracks probability barometers to procure the bids above 107.00 https://t.co/EznYOGrLI6— FOREX IN WORLD (@forex_in_world) July 6, 2020 submitted by Red-its to forextweet [link] [comments]

http://twitter.com/forex_in_world/status/1267688451236933632AUD/USD pick-up bids toward 0.6800 after RBA’s status-quo https://t.co/KG1cDokP8e— FOREX IN WORLD (@forex_in_world) June 2, 2020

http://twitter.com/forex_in_world/status/1267688451236933632AUD/USD pick-up bids toward 0.6800 after RBA’s status-quo https://t.co/KG1cDokP8e— FOREX IN WORLD (@forex_in_world) June 2, 2020 submitted by Red-its to forextweet [link] [comments]

in forex, why does tick volume counter only increase when new bid quotes are received?

submitted by nadonet to StonkFeed [link] [comments]

http://twitter.com/forex_in_world/status/1262041700815572992Bank Of Canada Delivers, USD/CAD Goes Bid https://t.co/TDjzF67RXB— FOREX IN WORLD (@forex_in_world) May 17, 2020

http://twitter.com/forex_in_world/status/1262041700815572992Bank Of Canada Delivers, USD/CAD Goes Bid https://t.co/TDjzF67RXB— FOREX IN WORLD (@forex_in_world) May 17, 2020 submitted by Red-its to forextweet [link] [comments]

http://twitter.com/forex_in_world/status/1262223143055343616EUR/USD Has Quietly Gone Bid This Week https://t.co/VVj3PJGVAz— FOREX IN WORLD (@forex_in_world) May 18, 2020

http://twitter.com/forex_in_world/status/1262223143055343616EUUSD Has Quietly Gone Bid This Week https://t.co/VVj3PJGVAz— FOREX IN WORLD (@forex_in_world) May 18, 2020 submitted by Red-its to forextweet [link] [comments]

[ZA] - Zimbabwe increases passport fees in bid to raise forex

[ZA] - Zimbabwe increases passport fees in bid to raise forex submitted by AutoNewsAdmin to IOLauto [link] [comments]

[ZA] - Zimbabwe increases passport fees in bid to raise forex | IOL

[ZA] - Zimbabwe increases passport fees in bid to raise forex | IOL submitted by AutoNewspaperAdmin to AutoNewspaper [link] [comments]

@AlphaexCapital : Cable hits two-week high as pound finds fresh bids to start the day https://t.co/XxZwwVrD8v #forex #investing #bitcoin #crypto #xrp #btc #eth #forexsignals

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@AlphaexCapital : Sterling extends gains as Boris Johnson's election bid looks to be DOA https://t.co/pCezJNK0S9 #forex #forextrading #investing

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@AlphaexCapital : US dollar finds a bid into the fix https://t.co/HuI3LlNg2H #forex #news #forextrading #investing

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Best bid & ask size data for forex available?

Hi,
Currently, I use Dukascopy free forex data to train an algorithm. The data contains bid & ask price and bid & ask volume for all ticks. As far as I understand, bid & ask volume is the trading volume and not the best bid & ask size (the amount which is offered for the best price).
Does anyone know of a data source which contains the bid & ask size as well? Generally, I am willing to pay something for it provided I get a half a year of historical data first for free (or for a reasonable fixed price) to test if it is useful at all.
So, I need the following:
- Historical forex data (tick or 1s-15s bars)- Live forex data (tick or at 1s-15s bars)- Columns: time, bid & ask price, bid & ask size, bid & ask trading volume

Any suggestions?

Edit: I am a student. Maybe that helps to get free data from a expensive provider? :-)
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Bid View MetaTrader 4 Forex Indicator- Download Free!

Bid View MetaTrader 4 Forex Indicator- Download Free! submitted by ForexMTindicators to u/ForexMTindicators [link] [comments]

[World] - China cracking down on illegal underground forex trading in bid to control capital flight | South China Morning Post

[World] - China cracking down on illegal underground forex trading in bid to control capital flight | South China Morning Post submitted by AutoNewspaperAdmin to AutoNewspaper [link] [comments]

[World] - China cracking down on illegal underground forex trading in bid to control capital flight

[World] - China cracking down on illegal underground forex trading in bid to control capital flight submitted by AutoNewsAdmin to SCMPauto [link] [comments]

China cracking down on illegal underground forex trading in bid to control capital flight

China cracking down on illegal underground forex trading in bid to control capital flight submitted by rotoreuters to betternews [link] [comments]

Any US forex brokers that allow stop bid buy orders and stop offer sell orders?

As an ex prof FX trader I'm horrified that places like Oanda trigger buy stop orders off the offer and vice versa. That is criminal. Are there any US brokers that allow stop bid and stop offer orders? I see dukascopy allows them but they don't allow US customers. Thanks
submitted by mgdpublic to Forex [link] [comments]

Former investment bank FX trader: Risk management part II

Former investment bank FX trader: Risk management part II
Firstly, thanks for the overwhelming comments and feedback. Genuinely really appreciated. I am pleased 500+ of you find it useful.
If you didn't read the first post you can do so here: risk management part I. You'll need to do so in order to make sense of the topic.
As ever please comment/reply below with questions or feedback and I'll do my best to get back to you.
Part II
  • Letting stops breathe
  • When to change a stop
  • Entering and exiting winning positions
  • Risk:reward ratios
  • Risk-adjusted returns

Letting stops breathe

We talked earlier about giving a position enough room to breathe so it is not stopped out in day-to-day noise.
Let’s consider the chart below and imagine you had a trailing stop. It would be super painful to miss out on the wider move just because you left a stop that was too tight.

Imagine being long and stopped out on a meaningless retracement ... ouch!
One simple technique is simply to look at your chosen chart - let’s say daily bars. And then look at previous trends and use the measuring tool. Those generally look something like this and then you just click and drag to measure.
For example if we wanted to bet on a downtrend on the chart above we might look at the biggest retracement on the previous uptrend. That max drawdown was about 100 pips or just under 1%. So you’d want your stop to be able to withstand at least that.
If market conditions have changed - for example if CVIX has risen - and daily ranges are now higher you should incorporate that. If you know a big event is coming up you might think about that, too. The human brain is a remarkable tool and the power of the eye-ball method is not to be dismissed. This is how most discretionary traders do it.
There are also more analytical approaches.
Some look at the Average True Range (ATR). This attempts to capture the volatility of a pair, typically averaged over a number of sessions. It looks at three separate measures and takes the largest reading. Think of this as a moving average of how much a pair moves.
For example, below shows the daily move in EURUSD was around 60 pips before spiking to 140 pips in March. Conditions were clearly far more volatile in March. Accordingly, you would need to leave your stop further away in March and take a correspondingly smaller position size.

ATR is available on pretty much all charting systems
Professional traders tend to use standard deviation as a measure of volatility instead of ATR. There are advantages and disadvantages to both. Averages are useful but can be misleading when regimes switch (see above chart).
Once you have chosen a measure of volatility, stop distance can then be back-tested and optimised. For example does 2x ATR work best or 5x ATR for a given style and time horizon?
Discretionary traders may still eye-ball the ATR or standard deviation to get a feeling for how it has changed over time and what ‘normal’ feels like for a chosen study period - daily, weekly, monthly etc.

Reasons to change a stop

As a general rule you should be disciplined and not change your stops. Remember - losers average losers. This is really hard at first and we’re going to look at that in more detail later.
There are some good reasons to modify stops but they are rare.
One reason is if another risk management process demands you stop trading and close positions. We’ll look at this later. In that case just close out your positions at market and take the loss/gains as they are.
Another is event risk. If you have some big upcoming data like Non Farm Payrolls that you know can move the market +/- 150 pips and you have no edge going into the release then many traders will take off or scale down their positions. They’ll go back into the positions when the data is out and the market has quietened down after fifteen minutes or so. This is a matter of some debate - many traders consider it a coin toss and argue you win some and lose some and it all averages out.
Trailing stops can also be used to ‘lock in’ profits. We looked at those before. As the trade moves in your favour (say up if you are long) the stop loss ratchets with it. This means you may well end up ‘stopping out’ at a profit - as per the below example.

The mighty trailing stop loss order
It is perfectly reasonable to have your stop loss move in the direction of PNL. This is not exposing you to more risk than you originally were comfortable with. It is taking less and less risk as the trade moves in your favour. Trend-followers in particular love trailing stops.
One final question traders ask is what they should do if they get stopped out but still like the trade. Should they try the same trade again a day later for the same reasons? Nope. Look for a different trade rather than getting emotionally wed to the original idea.
Let’s say a particular stock looked cheap based on valuation metrics yesterday, you bought, it went down and you got stopped out. Well, it is going to look even better on those same metrics today. Maybe the market just doesn’t respect value at the moment and is driven by momentum. Wait it out.
Otherwise, why even have a stop in the first place?

Entering and exiting winning positions

Take profits are the opposite of stop losses. They are also resting orders, left with the broker, to automatically close your position if it reaches a certain price.
Imagine I’m long EURUSD at 1.1250. If it hits a previous high of 1.1400 (150 pips higher) I will leave a sell order to take profit and close the position.
The rookie mistake on take profits is to take profit too early. One should start from the assumption that you will win on no more than half of your trades. Therefore you will need to ensure that you win more on the ones that work than you lose on those that don’t.

Sad to say but incredibly common: retail traders often take profits way too early
This is going to be the exact opposite of what your emotions want you to do. We are going to look at that in the Psychology of Trading chapter.
Remember: let winners run. Just like stops you need to know in advance the level where you will close out at a profit. Then let the trade happen. Don’t override yourself and let emotions force you to take a small profit. A classic mistake to avoid.
The trader puts on a trade and it almost stops out before rebounding. As soon as it is slightly in the money they spook and cut out, instead of letting it run to their original take profit. Do not do this.

Entering positions with limit orders

That covers exiting a position but how about getting into one?
Take profits can also be left speculatively to enter a position. Sometimes referred to as “bids” (buy orders) or “offers” (sell orders). Imagine the price is 1.1250 and the recent low is 1.1205.
You might wish to leave a bid around 1.2010 to enter a long position, if the market reaches that price. This way you don’t need to sit at the computer and wait.
Again, typically traders will use tech analysis to identify attractive levels. Again - other traders will cluster with your orders. Just like the stop loss we need to bake that in.
So this time if we know everyone is going to buy around the recent low of 1.1205 we might leave the take profit bit a little bit above there at 1.1210 to ensure it gets done. Sure it costs 5 more pips but how mad would you be if the low was 1.1207 and then it rallied a hundred points and you didn’t have the trade on?!
There are two more methods that traders often use for entering a position.
Scaling in is one such technique. Let’s imagine that you think we are in a long-term bulltrend for AUDUSD but experiencing a brief retracement. You want to take a total position of 500,000 AUD and don’t have a strong view on the current price action.
You might therefore leave a series of five bids of 100,000. As the price moves lower each one gets hit. The nice thing about scaling in is it reduces pressure on you to pick the perfect level. Of course the risk is that not all your orders get hit before the price moves higher and you have to trade at-market.
Pyramiding is the second technique. Pyramiding is for take profits what a trailing stop loss is to regular stops. It is especially common for momentum traders.

Pyramiding into a position means buying more as it goes in your favour
Again let’s imagine we’re bullish AUDUSD and want to take a position of 500,000 AUD.
Here we add 100,000 when our first signal is reached. Then we add subsequent clips of 100,000 when the trade moves in our favour. We are waiting for confirmation that the move is correct.
Obviously this is quite nice as we humans love trading when it goes in our direction. However, the drawback is obvious: we haven’t had the full amount of risk on from the start of the trend.
You can see the attractions and drawbacks of both approaches. It is best to experiment and choose techniques that work for your own personal psychology as these will be the easiest for you to stick with and build a disciplined process around.

Risk:reward and win ratios

Be extremely skeptical of people who claim to win on 80% of trades. Most traders will win on roughly 50% of trades and lose on 50% of trades. This is why risk management is so important!
Once you start keeping a trading journal you’ll be able to see how the win/loss ratio looks for you. Until then, assume you’re typical and that every other trade will lose money.
If that is the case then you need to be sure you make more on the wins than you lose on the losses. You can see the effect of this below.

A combination of win % and risk:reward ratio determine if you are profitable
A typical rule of thumb is that a ratio of 1:3 works well for most traders.
That is, if you are prepared to risk 100 pips on your stop you should be setting a take profit at a level that would return you 300 pips.
One needn’t be religious about these numbers - 11 pips and 28 pips would be perfectly fine - but they are a guideline.
Again - you should still use technical analysis to find meaningful chart levels for both the stop and take profit. Don’t just blindly take your stop distance and do 3x the pips on the other side as your take profit. Use the ratio to set approximate targets and then look for a relevant resistance or support level in that kind of region.

Risk-adjusted returns

Not all returns are equal. Suppose you are examining the track record of two traders. Now, both have produced a return of 14% over the year. Not bad!
The first trader, however, made hundreds of small bets throughout the year and his cumulative PNL looked like the left image below.
The second trader made just one bet — he sold CADJPY at the start of the year — and his PNL looked like the right image below with lots of large drawdowns and volatility.
Would you rather have the first trading record or the second?
If you were investing money and betting on who would do well next year which would you choose? Of course all sensible people would choose the first trader. Yet if you look only at returns one cannot distinguish between the two. Both are up 14% at that point in time. This is where the Sharpe ratio helps .
A high Sharpe ratio indicates that a portfolio has better risk-adjusted performance. One cannot sensibly compare returns without considering the risk taken to earn that return.
If I can earn 80% of the return of another investor at only 50% of the risk then a rational investor should simply leverage me at 2x and enjoy 160% of the return at the same level of risk.
This is very important in the context of Execution Advisor algorithms (EAs) that are popular in the retail community. You must evaluate historic performance by its risk-adjusted return — not just the nominal return. Incidentally look at the Sharpe ratio of ones that have been live for a year or more ...
Otherwise an EA developer could produce two EAs: the first simply buys at 1000:1 leverage on January 1st ; and the second sells in the same manner. At the end of the year, one of them will be discarded and the other will look incredible. Its risk-adjusted return, however, would be abysmal and the odds of repeated success are similarly poor.

Sharpe ratio

The Sharpe ratio works like this:
  • It takes the average returns of your strategy;
  • It deducts from these the risk-free rate of return i.e. the rate anyone could have got by investing in US government bonds with very little risk;
  • It then divides this total return by its own volatility - the more smooth the return the higher and better the Sharpe, the more volatile the lower and worse the Sharpe.
For example, say the return last year was 15% with a volatility of 10% and US bonds are trading at 2%. That gives (15-2)/10 or a Sharpe ratio of 1.3. As a rule of thumb a Sharpe ratio of above 0.5 would be considered decent for a discretionary retail trader. Above 1 is excellent.
You don’t really need to know how to calculate Sharpe ratios. Good trading software will do this for you. It will either be available in the system by default or you can add a plug-in.

VAR

VAR is another useful measure to help with drawdowns. It stands for Value at Risk. Normally people will use 99% VAR (conservative) or 95% VAR (aggressive). Let’s say you’re long EURUSD and using 95% VAR. The system will look at the historic movement of EURUSD. It might spit out a number of -1.2%.

A 5% VAR of -1.2% tells you you should expect to lose 1.2% on 5% of days, whilst 95% of days should be better than that
This means it is expected that on 5 days out of 100 (hence the 95%) the portfolio will lose 1.2% or more. This can help you manage your capital by taking appropriately sized positions. Typically you would look at VAR across your portfolio of trades rather than trade by trade.
Sharpe ratios and VAR don’t give you the whole picture, though. Legendary fund manager, Howard Marks of Oaktree, notes that, while tools like VAR and Sharpe ratios are helpful and absolutely necessary, the best investors will also overlay their own judgment.
Investors can calculate risk metrics like VaR and Sharpe ratios (we use them at Oaktree; they’re the best tools we have), but they shouldn’t put too much faith in them. The bottom line for me is that risk management should be the responsibility of every participant in the investment process, applying experience, judgment and knowledge of the underlying investments.Howard Marks of Oaktree Capital
What he’s saying is don’t misplace your common sense. Do use these tools as they are helpful. However, you cannot fully rely on them. Both assume a normal distribution of returns. Whereas in real life you get “black swans” - events that should supposedly happen only once every thousand years but which actually seem to happen fairly often.
These outlier events are often referred to as “tail risk”. Don’t make the mistake of saying “well, the model said…” - overlay what the model is telling you with your own common sense and good judgment.

Coming up in part III

Available here
Squeezes and other risks
Market positioning
Bet correlation
Crap trades, timeouts and monthly limits

***
Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
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what is Ask and Bid Price in forex? 2.2 Bid, ask and the spread in trading - YouTube 01 The Bid and Ask Price in Practice - FXTM Trading Basics ... Bid / Ask Spread  Trading Terms - YouTube Lesson 6: What is a spread in forex? - YouTube

Bid price. The bid price in forex is the maximum exchange rate which a forex trader is willing to pay for the currency pair. The forex buyer will always be interested in paying the lowest price for the currency he wishes to purchase and will specify the lowest bid price. The Forex Trading Bid & Ask Prices and Spread. This page covers everything you need to know about the bid and ask prices in the online Forex trading market, From the definition of Forex bid & ask prices, to the use of the bid & ask spread.. A Forex Trading Bid price is the price at which the market is prepared to buy a specific currency pair in the Forex trading market. Forex brokers Reviews Bid Broker Stocks is yet another trading name of the Seabreeze Partners Ltd, a company with questionable reputation, we can safely make such a claim. Fairly speaking, the ... In forex trading, currencies are always quoted in pairs – that’s because you’re trading one country’s currency for another. The first currency listed is the base currency; The value of the base currency is always 1 ; The Bid and the Ask. Just like other markets, forex quotes consist of two sides, the bid and the ask: Helpful hint Bid-Ask Spreads in the Retail Forex Market . The bid price is what the dealer is willing to pay for a currency, while the ask price is the rate at which a dealer will sell the same currency.

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what is Ask and Bid Price in forex?

The difference between the buy and sell price (also known as bid and ask) is one of those things that mystifies newbies. We’re not used to having two prices ... Understand how to deal with Bid Ask spreads in trading forex. Learn how to factor in the bid ask spread when placing trades in forex trading These are essent... Welcome to FXTM Trading Basics, the second part of our short forex trading video series. FX Guru and FXTM Head of Education, Andreas Thalassinos kicks things... Get more information about IG US by visiting their website: https://www.ig.com/us/future-of-forex Get my trading strategies here: https://www.robbooker.com C... http://www.capexforextrading.com/forex-brokers-software We discuss the difference between the bid and the ask and guide you through an example of spreads. Re...

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