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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (44391)	12/28/2008 5:49:26 AM
From: Stoctrash	1 Recommendation Respond to of 217548

Thanks for the thoughts. The BIG factor for me (like you pointed out) is trust. Who can I trust that likely will not go "Maddoff-ing" or "Refco-ing" on me? <Other option is to trade on the CME currencies and not OTC via the other brokers in today's environment it may be safer.> Who wants to deal with Counterparty risk after what we've seen happen this past year? The CME sounds like the way to go since you can just smell a FOREX blowup coming from someplace very very soon. Look at the wave of FOREX shops and online players, there are banner adds everywhere! Reminds me of online mortgage brokers a few years ago. Then again, who says the CME is bullet proof? edit..just found this... Tim Morge has some compelling info: "Why YOU Should Trade CME Currency Futures Instead Of Cash FX" trade2win.com ================================== forexpig.com (snip) Counterparty Risk The Chicago Mercantile Exchange guarantees each transaction. This means that if you go long a currency futures contract and your speculation was correct, you will walk away from the trade with your profit even if the person that took the other side of the trade fails to pay. This is extremely important. After all, it is hard enough to make money as a speculator; the last thing that a trader needs to worry about is whether or not they will actually see the monetary reward from a winning trade. Unlike futures currency traders, Forex traders are exposed to counterparty risk. The person on the other end of your trade may be the dealing desk of your brokerage firm or it may be an actual inter-bank market participant, nonetheless, your profitable trades are dependent on their ability to “pay up”. There are FX traders that have been extremely active for years and have yet to be affected by counterparty risk. Yet, the risk exists and you should know about it.