Since MB Trading is a ECN broker which allows you to trade between the spread…
Does MBT Navigator show Time and Sales data for FX trades?
If so, have you noticed if trades tend to take place at both bid and ask (that is, at both sides of the spread)?
Have you tried to sub-penny jump ahead of FX market makers with limit orders 1/10th of a pip above their bid (for buys) /ask (for sells) quotes in order to CAPTURE the spread rather than paying it on pairs whose spreads are already wide, such as GBP/JPY or AUD/NZD?
If something like this does indeed work, it could be a gold mine. A 3 pips spread (net 2 pips after commissions) would add super quick, although it’d involve a helluva work.
You can place your order between the spread. When you do this, you effectively tighten the spread. But its like any other stop/limit order. For example, if you place a bid between the current bid/ask, and the ask never reaches your bid then your order is not filled.
If it’s a real market, you don’t need the ask to hit your bid. What you need is a market sell order to hit your bid. If the ask has to move down to your bid, then you’re trading against a Market Maker so the odds will be stacked against you.
That sounds right and indeed that’s exactly how they work. A market sell order would also hit your bid. But if no market order occurs before price moves away then your order is not filled.
What I’d like to know is, by means of Time and Sales data, if it does indeed show activity at two sides of the spread, and how “liquid” those contracts actually are.
