What happens when you buy the XAUUSD?

[Trembling Hand]

he didn't even know what a future was?

Really? He pretty much answered his own question in the second line of the opening post where he mentioned the CFD linked to a futures contract. All that was needed was confirmation of that.

attack the man when you lose.

Talking about that. Can I ask how do you know what the xauusd derives its price from.

 

[OmegaTrader]

Really? He pretty much answered his own question in the second line of the opening post where he mentioned the CFD linked to a futures contract. All that was needed was confirmation of that.



Talking about that. Can I ask how do you know what the xauusd derives its price from.

Don't attack me, attack the idea.

ah McCain he's done it again

 

[Trembling Hand]

Don't attack me, attack the idea.

ah McCain he's done it again

So you have no idea then?

 

[OmegaTrader]

I am not going to bet in a tit for tat argument. The thread starter asked some questions, I gave my opinion on what he was trading and how the instruments roughly came to be. If you disagree with what i have said or the usefulness of it that is fine, but no need to discredit what I say by personal attacks.

Each OTC broker is different but they will look at more direct markets for guidance.
The cme is futures has London has metals as well. Anybody can google that these days.
but that is off topic...

 

[Trembling Hand]

Each OTC broker is different but they will look at more direct markets for guidance.

This is what I am getting at. People state **** on trading forums as facts when they have seemly little idea in the hope of helping but it makes it worse. There is no vague "direct markets for guidance". They rarely hedge your positions and do so only if you're large enough that they exceed their own risk tolerances. In spite of the BS they tell you. They are linked tick for tick to a futures or a intermarket instrument, though they can be actually priced at some arbitrary amount off the link instrument, all the better to confuse you.

Once you find out what it is you can then understand what you are trading and what the market participants are doing. You can pay for the real data and start to open your eyes as to what is going on.

 

[OmegaTrader]

This is what I am getting at. People state **** on trading forums as facts when they have seemly little idea in the hope of helping but it makes it worse. There is no vague "direct markets for guidance". They rarely hedge your positions and do so only if you're large enough that they exceed their own risk tolerances. In spite of the BS they tell you. They are linked tick for tick to a futures or a intermarket instrument, though they can be actually priced at some arbitrary amount off the link instrument, all the better to confuse you.

Once you find out what it is you can then understand what you are trading and what the market participants are doing. You can pay for the real data and start to open your eyes as to what is going on.

That is basically what I said...
They are all different and will look at the other markets to price their own instruments.
How is what I said bs???
OTC do look at direct markets for pricing, do they not??
They can be settled at official closing prices, and will follow exchanges general direction although not point for point etc etc
Some instruments will use official exchange figures for settlement, eg options or binary options.etc etc.


In previous posts I stated they control all aspects of the instrument spread, rollover etc etc just like a bookie. Price is also part of that.

What did I say that was wrong?

I don't even know what the argument is at the moment.

 

[Ozzie2k1]

Has anyone found the answer for this?