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ASIA PACIFIC AUSTRALIA CANADA EUROPE JAPAN ENGLISH. A history of transparency OANDA hosts one of the longest-standing forex forums on the web. Index User list Login Register. Forex prices and FX futures correlation Hi, I use ProRealTime for charting and subscribe to both currencies and futures real-time data. Not happy with volume data from sources like StrategyBuilder, I decided to see how FX futures correlated to spot forex. This gives some insight into certain prices that seem to have signficance in spot that don't initially make sense, Futures also have much less volatility. That said, the days trading range is exactly the correlation, it just doesn't jiggle as much. I also haven't noticed any leading or lagging in price between the 2 that would provide arbitrage opportunities. They seem to oanda in sync, yet not completely. Many more ticks in spot. A tick chart will look completely different in spot than on future. So where does the futures data come from? Because it correlates directly with spot with 40 pip or so difference. And the euro fx future is traded on the CME so, it's a fixed price, one and only one price available. Spot price would seem to be much more of a concrete thing, related to an actual exchange traded instrument. I wrote this post after reading another one here that talked as if spot prices were just these wild things that any broker could quote any price they wanted. Sure they could, but if they are hedging and stuff, the prices they are hedging at are going to be the price that is futures-correlated. That is an official, exchange traded price, if I am correct on what I am seeing on CME data from PRT. Kali correlation November 10, KaliKali ] "There's a time to go long, a time to go short, and a time to go shopping. Forex prices and FX futures correlation Thank you for your views on this. I've been curious about the correlation between futures and spot but not enough to actually go out there correlation study it. Your post confirms some assumptions I had between the two. My algorithm can beat up your algorithm. Forex prices and FX futures correlation Here is a link that includes futures charts for the euro, canadian, yen, pound, and others, with some other additional info you may find of value??? Forex prices and FX futures correlation Hi Kali Are you looking at the big contract data the one that is floor traded during the day? If so, where do you subscribe to that? Even with my Interactive Broker account I cannot get that and it can't be traded there. As for retail FX brokers 'making up' the spot prices, I think ur right, they only can shade them I believe. A few pips on one side or the other. Its hard for me to figure what the attraction to trading currency futures is, over spot, except that futures are a thoroughly regulated market. Forex prices and FX futures correlation Hi Tsch, Yeah they are far less liquid. The lower volatility makes them far less interesting for quick intraday trades as well. What I'm looking oanda is CME futures data that I get through ProRealTime trader's workstation. I love them--love them. I don't think it's the big contract data or anything. I get it in same format we get spot data from Oanda. If I traded futures I could trade with the data just like I use PRT's spot data to trade on Oanda. All in all though, I haven't found the futures data to be of actual value with my trading style. It's been very educational though. Watching volume is definitely insightful but once you get a look at how oanda works it's actually pretty self-explanatory. More like a "yup, that's why that happened" than a "wow I can trade that!! That's not to say someone else wouldn't find it immensely helpful though. Forex prices and FX futures correlation I think Kali means that the interbank market is 'making up' spot prices and not the price shading done by retail fx brokers. That's where our higher volatility or 'jigglyness' comes from as compared to the CME fx futures. Many dealers are continuously quoting prices within the range of the market but not all at the same prices. Thanks for posting this! USA - Minnesota Registered: Forex prices and FX futures correlation lots of great info here. Note, u can fudge the registration, just put in anything. Surrender to the reality that volatility exists, or volatility will introduce you to the reality that surrender exists. Forex prices and FX futures correlation Thanks Siam, that looks interesting. Craig,my guess on the 40 pip difference is maybe it's because it's a "future" so the price is adjusted because of the delivery being farther ahead in time than spot? Forex have to look into that but that was my general assumption. I have access to eurodollar future prices and there's some differences there too, notably at 12 mo the price is pips higher than the other time periods. I'm sure this all forex perfect forex to futures traders. The financial world is a wondrous and complicated thing to behold: Especially to those of us who are in the business of just starting to self-educate ourselves. Kali "There's a time to go long, a time to go short, and a time to go shopping. Forex prices and FX futures correlation With instruments in long-term bear markets, the further out contracts tend to be lower, the reverse if it's in a long-term bull. The nearest contract tends to be right there with the cash market. Futures contracts tend to reflect a premium formed only through supply and demand that steadily decays over time till it is gone at expiration, where the price should mate up with the oanda price. When you hold a particular future long-term, and you keep rolling over to the nearest new contract as the old one expires, you keep losing the value of the premium. Forex prices and FX futures correlation Futures prices reflect the current spot price with a fixed differential for the interest expected to be collected or received between the current point in time and delivery. In theory you could buy the spot and sell the futures contract and as the forex continued to approach each other you would pay or receive interest comparable to the decay in price seperation. Thus theoretically they can be used to hedge each other. However when there is an interest rate adjustment the futures contract is forced to a new correlation point as the anticipated interest costs or benefits change. The observation about Bear and Bull markets, If accurate, would tend to expose the fact or fallicy of carry trading. The reason futures correlate, but not precisely other than when interest rate changes are announced forex because they should correlate precisely, but futures lack some liquidity, and because correlation futures contracts are single exchange instruments, thus volatility would need to be compared to correlation from a single data provider rather than a composite feed. Terms of Use Privacy Policy Site Map Contact Us Feedback.
Forex Correlation: Simple Forex Strategy For Huge Profits
Forex Correlation: Simple Forex Strategy For Huge Profits
Thomas Wolsey fell from his extreme height of power in 1529, but how.
Reprinted in Nassau Senior, Selected Writings on Economics (New York: Augustus M.
Synopsis: — The Pianoforte and its Immediate Precursors (the Harpsi-.