Real ECN/STP Brokers Wtih 0.01 Lot = Myth or Reality?
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thread: Real ECN/STP Brokers Wtih 0.01 Lot = Myth or Reality?

  1. #1
    Junior Member Rechupsycho's Avatar
    26

    Real ECN/STP Brokers Wtih 0.01 Lot = Myth or Reality?

    Hello, Folks.

    Would you think that it could be possible for actual ECN/STP brokers to provide 0.01 lot size trading in the true intermarket environment?

    I read someplace on web that actual interbank brokers can simply work with lot dimensions starting from 0.10...

    Would anyone please explain this query?

    Thank you Beforehand,
    MrJinks.

  2. #2
    quote Lmax is doing this and they have the majority of the main FX banks in their system. As does IB - though minimal is 20K there, however, does this really matter if its 1k or 20k, both is microscopic. Ticket count is compressed by appliions like Traiana Harmony for post-trade functions which reduces cost, but no risk is being internalized. Average ticket size is constantly going down even in the institutional sector since decades and ticket count is moving up. Its only a software issue, 15 years ago it was distinct, but its not really.
    LMAX and IB operate such as markets.
    Quite simply their clients are allowed to choose another side of this commerce being portion of the exchange.

  3. #3
    Junior Member edu333's Avatar
    26
    If their LPs client base is large enough to pool the lots, why not? Additionally, there's a misconception that LPs or Banks are not themselves MMs. Perhaps the broker's LP's Bank or their LP has a structure in place to allow this.

  4. #4
    Junior Member JaviSpears's Avatar
    15
    For what I know Most ECNs do not take under 0.10.

    But For the traders that the principal concern is swap and spread. . And slippage/requote.

    It's not your problem how the broker fill the 0.01.

    Thus, I believe it is not a real problem.


    Most orders under 0.10 are filled with some hybrid technique. .

  5. #5
    Junior Member edu333's Avatar
    26
    correct. My sole point is, certain LPs might themselves be working with a hybrid method in order that they are able to offer below 0.10 so the LP's broker itself is capable of offering it also. The common misconception is that LPs and about the higher degree, large banks DONT operate as Market Makers or Hybrids. The easier to get LPs (hence why its more prevalent) might only be able to offer 0.10 and no lesser.

  6. #6
    Junior Member CRISUOX's Avatar
    22
    I really don't think it's possible, but I am slightly perplexed. I mean usually brokers state start from just 0.01 lot dimensions, but in actual it's 0.10 just according to market that I think is very much possible for actual ECN. At the moment I am working with OctaFX where it is comparable thing, as they're ECN and they offer the lowest at 0.01, but market wise it is 0.1 only.

  7. #7
    My guess is that all orders, happening at the same time /on the same pair, are merged to a single.
    So, assuming that the broker is busy enough, the minimum volume will always be bigger than 0.1.

  8. #8
    Junior Member JaviSpears's Avatar
    15
    My guess is that all orders, happening at precisely the same time /on precisely the same pair, are merged to one. So, supposing that the broker is active enough, the minimal volume will always be larger than 0.1.
    I think that it is as you stated.

    The orders are all pulled together and with a few algorith they go to the market to hedge their exposition.


    The model was clarified on the website of exness where there was a explation of the hedging process but there's not anymore.

  9. #9
    Junior Member Hugo_canch's Avatar
    16
    Hello, Folks. Do you think it could be possible for real ECN/STP brokers to provide 0.01 lot dimensions trading at the real intermarket atmosphere? I read someplace on net that real interbank brokers can simply work with lot sizes starting from 0.10... Can anyone please explain this query? Thank you in advance, MrJinks.
    As far as I understand it there are no real ecn fx brokers. At least not at the real feeling of an ecn such as futures and stocks??

  10. #10
    Senior Member rubesnsbelmokte's Avatar
    164
    quote As far as I know it there are no true ecn fx brokers. At least not at the actual feeling of an ecn such as stocks and futures??
    There's lmax

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