Page 1 of 503 1 2 3 LastLast
Results 1 to 10 of 25

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

  1. #1

    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
    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.

  3. #3
    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. .

  4. #4
    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.

  5. #5
    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.

  6. #6
    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.

  7. #7
    Quote Originally Posted by ;
    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.

  8. #8
    Quote Originally Posted by ;
    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??

  9. #9
    Quote Originally Posted by ;
    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

  10. #10
    Quote Originally Posted by ;
    quote there is lmax
    However an ecn takes into account the entire market. There is no fx broker which has liquidity during the whole fx market. So again as the real definition of an ecn lmax is still not an ecn? They could trail through their banks or spouses but don't deal with all of them. So liquidity may lack at times?Maybe im simply comparing to futures and stocks too much and anticipating that?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. Read more.