What type of commodities do you guys trade? Do you focus on Forex with algo trading, Options?
So like the title suggest I was wondering what types of trades or trading do you focus on? I am super into options but want to get into algo trading to become a better technical trader. If you focus on forex what platforms do you use to trade on. I know with TD ameritrade I think the report they have is 30-40% of traders who trade forex lose money and TD leverages against you? Any help would be awesome!!! Edit: You guys are amazing honestly! Thank you so much for the help you've guys (and gals) given me a lot to think about!
TD Ameritrade/Thinkorswim - anyone use them for forex trading? Spread question
Just started demo trading on Thinkorswim/TD Ameritrade. Was looking at the GBP/JPY spread last night - it’s like... 15-20 pips. Guessing people do not trade forex on TD Ameritrade because of the spread...? Leverage? Am I figuring the pip spread out incorrectly? Seemed a lot higher than EUUSD which is maybe 5-6 pips. Also know most people use specific forex brokerages and I’m curious if pip spread is the reason. Bonus question - if a trade starts going the opposite way, I’ll reverse the trade sometimes. When I do that, where is the sale price, and at what price do I enter a sell/short position at? Thanks
I'm interested in trading Forex, I was wondering how I even begin doing this. Right now I have TD Ameritrade, and the option to purchase EUUSD on ToS, unsure if it is leveraged. I've been following the market for a while and I find the volatility to be captivating. Coming from trading equities and options, is it absurd of me to expect to make money by passively trading currency with limit buys and limit sells?
My bankroll has just gotten too low. Putting 500 in my TD Ameritrade for hail mary options plays and 1200 in my forex account. Need as much leverage as I can get. I'm gonna start posting my results daily so you can feel a little better about your losses.
Hi. So, I've traded leveraged assets before... namely options. Recently, I discovered forex, and I realized certain immediate advantages:
Better bid-ask spreads than options, by a lot. (for options, 6-10% is considered a good bid-ask spread, with most being upwards of 30-40%).
Better commissions, at least from my broker. TD Ameritrade basically doesn't charge commission on forex trades.
Buying power recycles immediately, allowing me to trade however much I feel like. As I like to trade microtrends (trends that are 1 hour long, max), I particularly love this.
The currency pairs are open at weird hours, so I can trade after work or even in the middle of the night, allowing me to direct my full attention to trading whenever I have a free gap in my schedule, whatever time of day that might be.
All of that being said, I am extremely uneasy about certain aspects of forex, and maybe some of you can help me out. My biggest concern is margin. As I said before, I traded options, which are leveraged derivatives. However, the leverage built into options contracts is not the same thing as margin leverage. With options, I could still only lose my own money. Personally, in my entire time trading, I've had very few problems with my orders, but I was always trading in cash accounts, so I never much cared if there were minor hiccups. My worries are:
What if I overlook some important news, and a currency nosedives (like the EUCHF did in January) while I'm in a position? Normally I place a stop order and don't give it any more thought, but with margin, the question becomes more important... could a stop order fail?
What happens if trading halts while I'm in a leveraged position, and I'm unable to sell in time?
If I'm in a position on margin, and I am unable to stop it in time, I hear that the broker will attempt to do a "closeout" and close my position out. But what if the market isn't open at the time, or the broker doesn't close the position out in time?
Is there a limit on how much money I could owe my broker in case my margin blows up? I mean, I've heard of accounts going negative, but how negative could they go? My trading style usually involves being in a maximum-leverage position for a very short amount of time (usually a few minutes), and it's worked decently for me with options, but I can imagine a horror story with forex that couldn't really happen in the options world: what if I go all-in on a $20,000 position leveraged 50:1, and something goes terribly, horribly wrong 2 minutes in, and my stop order doesn't take me out for whatever reason, and the broker fails to catch it in time? Could I be liable for $1,000,000? What would you even do in that scenario, hire a lawyer?
Forgive me if these are noob margin questions, but I haven't really read any personal stories of people actually losing a bunch of margin on a leveraged position. I've heard of forex brokers filing for bankruptcy, but not individual traders over a forex trade... does this happen? And if so, how often, and what do you guys do to deal with the extraordinary leverage in the forex world?
Some perspective on trading software glitches/failures.
NYSEFailureAlgorithmFailureBloombergFailureDeutschebankFailureTDAmeritradeFailureETradeFailure Unfortunately, it happens. I have executed thousands of free trades with Robinhood (iOS and Android) over the past 8 months, and have had zero problems until the last couple weeks. I have been day-trading leveraged ETF's on RH Instant for the past month and I did get stuck in a trade with the first glitch about ten days ago. The amount of money I lost before I could close my position was about what it would cost me to make a dozen trades on another brokerage platform. I'm not here to blindly defend RH and I fully expect them to get their act together to protect their customers. For right now, why would I switch to a pay-per-trade brokerage when the possibility for downtime and software failures is also a historical possibility? The amount I've saved in brokerage and trade fees is enormous by comparison, but I'm hoping that stability and web/desktop trading will help establish RH as a long-term solution for day-trading. Maybe even linking with eSignal? That would be nice. TLDR; Expensive trading platforms fail/glitch too. Big time.
Pricing: TD Ameritrade uses GAIN Capital, the owner of FOREX.com, as its liquidity provider to handle its forex execution (on an agency basis). The spreads at TD Ameritrade for the EUR/USD contract was 1.06 pips, using average spread data from Oct 2018 through September 2019. The leverage on forex trading in the US is limited to 1:50. TD Ameritrade complies with the regulatory requirements and gives a maximum leverage of 1:50 on major forex pairs. That for exotic pairs is even lower: 1:20. Available only for US clients, this TD Ameritrade review found the broker offers commission-free shares, 2300 ETFs, 70 futures, Bitcoin Cryptocurrency, 70 currency pairs with leverage up 50:1 and the excellent ThinkOrSwim Trading Platform. The leverage on forex trading in the US is limited to 1:50. TD Ameritrade complies with the regulatory requirements and gives a maximum leverage of 1:50 on major forex pairs. That for exotic pairs is even lower: 1:20. TD Ameritrade Forex Margin/Leverage One more reason we like TD Ameritrade is because their leverage requirements are lower than other popular FOREX platforms. They use a 50:1 and 20:1 leverage model depending on whether the pair you’re trading is a major pair or an exotic pair. Here are two examples of what this would mean.
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