Feedback from Forex Fundamentalists?

[StockyGuy]

Hi All,

I'll be wiring 2k to Oanda on Monday. I'm still tossing up a number of points. I'll probably buy AUD/USD so I can laugh maniacally while the US economy sinks further: But I also wanna use the carry trade strategy -- and as I understand it the difference in Central Bank rates is only slim between these two currencies (though still in favour of buying AUD/USD, rather than selling). Still the carry trade opportunities are nothing like, say, buying NZD/JPY.

My greed(?) tempts me to use their maximum leverage of 50:1, but perhaps that is silly considering that, as a medium-long term hold, I certainly won't be watching it like a hawk 24/7. I suppose a degree of volatility could easily blow up my account or hit my stop. (Should I be worried about Oanda as an MM trying to "hunt my stop?")

Any comments from those experienced or just knowledgeable in more medium-long term fundamental oriented forex trading?

 

[ithatheekret]

You've got 50:1 and a $2K kitty .


I wouldn't be leaving the screen , get a zone timetable , set the alarm clock .


Good luck cobber . At least with Oanda you can trade when every market is open .

I like Oanda , but can't run the platform with my other feeds , using two units already , my news streamer overides the platform too .

Got small A/C with them , reserved for 25th Dec . and other days when some markets are closed .

 

[StockyGuy]

LOL, thanks, cobber.

But yeah I gather your suggesting such leverage is foolhardy with said account size, and I'd say you're probably right. I might try 5:1 so I don't get into too much probs. With NO leverage, I may as well leave it in an Australian savings account! 5:1 will at least make it interesting. But I'm gonna reassess all when I actually have my funds in there ready to trade. Risking real money tends to concentrate my mind wonderfully

Appreciate your reply.

 

[tayser]

1:5 is a rubbish level of leverage and you're far better to find a method you like, practice it in demos - and practice to a point where you're exploting FX's full potential @ 1:50 or 1:100, then once you satisfied with your method/style, go live.

$20,000 required margin just to trade 1 standard lot when you're just starting out? what's the point?!? you're likely to get a better return on EOD ASX trading....

You're missing a critical point with regards to FX: there is an enormous amount of demo accounts available which will allow you to simulate whatever method / strategy you like with no financial risk to yourself thus allowing you to learn and at the same time evaluate whether you like the strategy you've decided to test.

It sounds like you're just going to throw money at Oanda and hope for the best going by your first post... eh, unless a couple of thousand is just pocket change to you, you're wasting your money.

$0.02

 

[bvbfan]

I would say I trade AUD mostly from a fundamental point of view. I am waiting for more of a correction, hopefully before Thursday as I think employment numbers will be quite hot.

Depends on where you enter really as to how you'll do on AUDUSD.

Perhaps there was also a capitulation low on the USDX on Friday.

 

[Stormin_Norman]

My greed(?) tempts me to use their maximum leverage of 50:1, but perhaps that is silly considering that, as a medium-long term hold, I certainly won't be watching it like a hawk 24/7. I suppose a degree of volatility could easily blow up my account or hit my stop. (Should I be worried about Oanda as an MM trying to "hunt my stop?")

ive never seen OandA 'hunt' my stops. often the market will move within a couple of pips before moving out again.

no need to use more then 50:1 leverage. but more important is not to risk any more then 2% on your trade. http://www.forexcalc.com/ has a good position builder so you dont go busting your account in 3 bad trades.

 

[Stormin_Norman]

My greed(?) tempts me to use their maximum leverage of 50:1, but perhaps that is silly considering that, as a medium-long term hold, I certainly won't be watching it like a hawk 24/7. I suppose a degree of volatility could easily blow up my account or hit my stop. (Should I be worried about Oanda as an MM trying to "hunt my stop?")

ive never seen OandA 'hunt' my stops. often the market will move within a couple of pips before moving out again.

no need to use more then 50:1 leverage. but more important is not to risk any more then 2% on your trade. http://www.forexcalc.com/ has a good position builder so you dont go busting your account in 3 bad trades.

 

[Stormin_Norman]

My greed(?) tempts me to use their maximum leverage of 50:1, but perhaps that is silly considering that, as a medium-long term hold, I certainly won't be watching it like a hawk 24/7. I suppose a degree of volatility could easily blow up my account or hit my stop. (Should I be worried about Oanda as an MM trying to "hunt my stop?")

ive never seen OandA 'hunt' my stops. often the market will move within a couple of pips before moving out again.

no need to use more then 50:1 leverage. but more important is not to risk any more then 2% on your trade. http://www.forexcalc.com/ has a good position builder so you dont go busting your account in 3 bad trades.

 

[StockyGuy]

A BIG thanks, guys, for your replies

Next question is for anyone whose tried to fund an AUD denominated OANDA account. I took the printed website details for deposits to my teller:


Send wire transfer to:

Bank: ANZ Banking Corp, Melbourne
Bank Address: 570 Church Street, Richmond VIC, Australia
Bank SWIFT Code: ANZBAU3M
Bank Account Name: JPMORGAN CHASE BANK, N.A. LONDON (SWIFT: CHASGB2L)
Account Number: 218032/00001

In the additional instructions field, you must include:

For Further Credit to
Account Name: OANDA Corporation
Account Number: 32282904 OR IBAN: GB76CHAS60924232282904 (Final beneficiary)
{FXTrade Account Holder's Name and FXTrade Account Number (if a new account, reference the words New Account)}.

***Please instruct your bank to send wire transfer via SWIFT.***

The NAB teller's eyes seemed to bulge in disbelief and finally she said she can't/won't submit the TT without a BSB # for the 570 Church Street, Richmond VIC, Australia ANZ. She called ANZ and they said they don't know it! She eventually seemed to find one on the Internet, then said if it bounces back I lose my $35 transfer fee. (She wasn't confident is right BSB.) She said I should call OANDA. I did and naturally OANDA don't know what an ANZ BSB is!

Anyone know what to do?? As far as I'm concerned no ANZ BSB should even be necessary as the SWIFT # is included.

Cheers.

 

[tayser]

Yes, their AUD instructions are ridiculous, I called em up twice and asked why I had to do an international transfer to a domestic bank which was to then do another SWIFT transfer to London....... Anyhow what I did: Bypass ANZ and send direct to the JP Morgan London-based account. Should take 1-2 days to arrive and Oanda are usually pretty quick to credit your FXTrade account. Make sure once you've done the SWIFT that you let them know you've done the transfer on their internal account management system.

OANDA Corporation
GB76CHAS60924232282904
Your Name, Your Acc #, New Account

***Instruct your bank to use SWIFT (will usually cost you $20-30 at your bank's end). Also recommend adding a few dollars to the amount you send... i.e if you're planning on sending $3000AUD, send $3050AUD just to cover any fees the intermediate banks may charge before Oanda receives the payment. And of course make sure your banks sends as AUD and not any other currency to that JP account.

 

[bvbfan]

The SWIFT code is the same for all ANZ branches in Australia just like CTBAAU2S is the SWIFT for all CBA branches.

What it might be is that the address if for the Operations Centre and not an actual branch.

Found this online
013-024 ANZInternational & High Value Services

But also

013-005ANZTPC Ops Vic/Tas
013-052ANZTPC Business Bank Support
013-061ANZTPC Vic/Tas

Sorry not more help, hope someone can clear it up for you

 

[StockyGuy]

Thanks, tayser and bvbfan.


Tayser, I did what you indicated. Fingers crossed! (Kinda glad to hear I wasn't the only one who's had issues with those payment instructions.)

Peace

 

[Stormin_Norman]

i bank with ANZ, and had no drama transferring the money.

 

[StockyGuy]

i bank with ANZ, and had no drama transferring the money.

Hehe yeah...that's easiest! But yeah I did what tayser said and it showed in 3 days.

I've gone long silver against the USD, only using approx 3:1 leverage...so I'm safe unless it goest back to late last year low. Set up last night and I'm up $126.90 as we speak lol. Gotta start somewhere!

 

[BentRod]

So to fund an Oanda account the only details needed are the ones posted by Tayser?

OANDA Corporation
GB76CHAS60924232282904
Your Name, Your Acc #, New Account

The ANZ details should be bypassed totally?

I have been trying to fund a USD sub account via Paypal but have had no success.

 

[tayser]

that's for AUD.

USD:

Bank: JPMorgan Chase Bank N.A.
Bank Address: 1 Chase Manhattan Plaza, New York, NY
Bank Routing or **ABA# 021000021
(or) SWIFT: CHASUS33
Bank Account Name: OANDA Corporation - Customer Funds
Account Number: 590-393-049

In the additional instructions field, you must include:
For Further Credit to: FXTrade Account Holder's Name and FXTrade Account Number (if a new account, reference the words New Account).
Check/Money Order Instructions

_________

If you have an Oanda account, go to the Cash Management system, it lists all the different currency denomination's banking details there.

 

[BentRod]

Thanks for the details Tayser.

I ended up linking my bank account with paypal and funded my USD account that way.

Would not work with my credit card...no idea why.

I'll do the AUD account later.