Here's a disturbing quote about forex trading taken directly from a great book I'm reading at the moment called "Come Into My Trading Room" by Dr Alexander Elder:
"The bulk of currency trading takes place in the interbank market, directly between dealers. Beginners turn to unscrupulous currency trading shops that bucket their orders (hold their money without executing trades) and kill them with commissions, spreads and interest charges. Survivors discover currency futures, where spreads are more narrow, commissions more reasonable and no interest is charged for the privilege of holding a position."
Are we all beginners here who use "unscrupulous currency shops", because what Dr Elder seems to be describing are the very businesses (without naming names) that we as small forex traders have to deal with.
I'm really concerned as to why he is so scathing of forex shops. Can anyone shed any light on his words.
Finally can anyone explain what a "currency future" is, as opposed to a direct forex trade?
"The bulk of currency trading takes place in the interbank market, directly between dealers. Beginners turn to unscrupulous currency trading shops that bucket their orders (hold their money without executing trades) and kill them with commissions, spreads and interest charges. Survivors discover currency futures, where spreads are more narrow, commissions more reasonable and no interest is charged for the privilege of holding a position."
Are we all beginners here who use "unscrupulous currency shops", because what Dr Elder seems to be describing are the very businesses (without naming names) that we as small forex traders have to deal with.
I'm really concerned as to why he is so scathing of forex shops. Can anyone shed any light on his words.
Finally can anyone explain what a "currency future" is, as opposed to a direct forex trade?