SEBI allowes Direct Market Access

[chintan786]

I live in India. I used to live in US between 1999 and 2007. My forex trading accounts were opened before I moved back to India.

Also, forex trading is legal in India. From what I understand you cannot have more than $25,000 remittance for forex trading per year.

ok.. so if I want to todo trading in the US mkt...can do so? if yes then can u plz tell me wht is the procedure...i mean shd i need to open new bank account and how to contact broker..etc.

regards

chintan

 

[trader111]

Adheer, many of my trades are about catching a spike like the one posted here:
http://www.traderji.com/trading-psy...ory-v-s-reactionary-trading-2.html#post169476

for such type of trades, tape reading is essential. changes in market microstructure can be crucial. That is what traderwiz talked about

The good thing about this is that good traders can read the mind of the market makers. And there are all kinds of orders you can place on a Level II and with all the ECN's.

and also I mentioned here what can be the effect for daytraders
http://www.traderji.com/trading-psychology/20527-what-edge-you-have-markets-3.html#post163830

 

[chintan786]

Before you start trading with real-money, I strongly recommend you paper-trade for atleast 3 months.

My preferred Forex Brokerage (IB) is www.interbankfx.com

For starters, you can open a demo account with them (even with anonymous e-mail Id etc) and get a feel of the forex markets.

For real trading, most reputed Forex brokers accept International Credit/Debit Cards, Wire Transfer mechanisms etc.

thanks adheer for the discusions and sharing information.

warm regards
chintan

 

[uasish]

I will give you the basic idea.
1) Identify for the support and resistance lines on the 1, 2 and 8 HR charts.
2) Identify Fractal points (High and Low points) of around these S&R points.
3) Determine "predicted" highs and lows if these points are crossed. I use Levenberg-Marquardt algorithm to identify these outside points.
4) Stop-loss points are identified using same method.
5) Risk per trade is 1% of account equity (maximum).
6) Lot size is calculated based on stop loss (pips) and risk per trade.
7) Currently, researching on co-relation between various currency pairs, volatility v/s probability of trade success etc.
8) System does not take into account swap-values & interest rolls.
9) If the system achieves a cluster of successful trades, we automatically reduce the risk per trade because law of averages catches up and we will have a few losing trade clusters.
10) Fridays and early Mondays (NY time) are market closing and opening. The system is "fooled" by slow-bleeding and bounce-off trades around support and resistance.

Once again, the system looks points promising so far after 250 real trades. I cannot predict what happens after a few more weeks.

So let us see where this road leads us.

Regards,
Adheer.

Thks ,will go thru your approach & revert back if any queries but just on the face of it ,it is the age old Saint's Method,though Saint's teaching tells us not to Predict but let the Trade develop & he also emphasized on Gradient approach some times,i am yet to go thru your steps & controlling the variables part & stand to be wrong in understanding.

 

[traderwiz]

Guys,

Forex trading is not easy. I mean, you can read all the threads which is on forexfactory or trade2win etc.... I have also read some thread about metatrader platform which is a big rip off..... Things that will happen when you trade the forex spot market.

1) What you see is not what you get. You may see a certain chart pattern and decide to trade based on it. But May not get the fill that you desire. I typically get fills which are 15 pips / points away. I have also heard that your fills can be even away from the current market price.

2) Market makers = bucket shops = they always take your money. 99.99% of the people in forex lose.

3) They never honor your stops. Like some one mentioned here, they will purposely bring the prices so that they can take away your stops.

To really make money you need the equivalent of a level II platform which is offered by Dukascopy but the minimum deposit is around $50,000 USD. The only way to make money is to deal directly with other large banks who take the opposite side of your transactions and you can get instant fills etc. If you trade through the broker, who do you think is taking the other side?

 

[trusty]

why do you all think that institutions in india are allowed to do "trading" in stocks. Algo trading is out of question in india. name any vendor who has actually sold this in india to any institution. also, instutions like to place orders thru brokers especially for their bulk orders....

 

[chintan786]

Hi all.. those who want to have DMA facility.. checkout this....
it becomes realty now..

http://bseindia.com/dma.asp

regards

chintan

 

[Niks]

Potential Impact

The basic brokerage fees for institutional trades in India range from 10 to 40 basis points, depending on the size of trade and range of execution services offered. As with the markets in the developed world, brokerage fee for DMA flows is expected to be lower.

By the end of 2008, DMA fees are expected to drop to 10"20 basis points. Also, a vast majority of the brokers will provide only basic order type DMA services in the initial period. Only a handful are expected to provide advanced services such as broker algorithms and smart routing initially.

While a few market players have already started trading on DMA channels, the vast majority of the providers and clients are in the process of upgrading their electronic trading systems and awaiting certification from SEBI/exchanges. Significant DMA volumes will commence only by Oct-Nov '08. Celent estimates that clients are likely to trade between 20% and 30% of their qualifying volumes through DMA channels initially. This will amount to an estimated 11% of the total market volume by 2010.

http://www.advancedtrading.com/feed/showArticle.jhtml?articleID=210200275&cid=RSSfeed_AT_All

 

[jessica_30]

Thank you for sharing the links. It adds to my knowledge.