What if you could switch trades?
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thread: What if you could switch trades?

  1. #1
    Junior Member mrsexceptiok's Avatar
    15

    What if you could switch trades?

    Switch the direction of your trade by changing with somebody holding in the opposite direction with an equal value of their trade relative to yours.

    For instance:

    If a individual is in a buy trade worth -$10

    and somebody else is in a sell trade worth -$10,

    can't both people just exchange their transactions with each other and call it a fair deal? Why is not the system set up for this? Seems like it might really help traders out. .

  2. #2
    Thank You for the Answers!
    I don't know what's the intention behind this particular question of switching trades. You should have explained a bit in your first post to get relevant answers.

    It's not legal to exchange stocks without between the stock exchange, unless these private prices are reported on the stock exchanges. Also, nobody can open a private stock exchange. In the same way, FX trading is subject to numerous differing local regulations. In a few countries, it is even illegal.

    Letting two traders to exchange their counter positions will open up a completely new chapter in FX market. Then there will be pools and groups of traders exchaning trades. Not only brokers will probably be losing their spread/commission, but netting such trades will become a huge task. It is going to also open new ways of money laundering and illegal transfers, etc..

  3. #3
    Senior Member Tataylo's Avatar
    435
    switch the path of your commerce by changing with somebody holding in the opposite direction with an equal value of the transaction relative to yours. For instance: If a person is in a buy trade value -$10 and somebody else is at a sell exchange worth -$10, can't both folks just exchange their trades with each other and call it a fair thing? Why isn't the system setup for this? Seems like it could assist traders out. .
    Even if they switched trades, both would still be 10. I really don't see how anybody would be helped by that. All things being equal, price has approx 50/50 likelihood of going in either way, after the switch, therefore neither is much better off mathematically.

    Surely you are not suggesting that the trades cancel each other. (-$10) (-$10) = -$20, maybe zero. Forex is a zero sum game. If two traders are collectively -$20, then the rest of the trading world is collectively $20.

    Should I owe the bank $10, and you owe the bank $10, would you believe the bank should cancel our debts, just because they're equivalent in size? Or alternatively, how would both of us be much better off if we switched bank accounts?

  4. #4
    change the path of your trade by changing with someone holding in the opposite direction with an equal value of the transaction relative to yours. For example: If someone is in a buy trade value -$10 and someone else is in a market exchange value -$10, can not both people simply exchange their transactions with one another and call it a fair deal? Isn't the machine set up for this? Seems like it might help traders out. .
    Reason your Q

    Trader 1
    purchased 1,70

    trader 2
    marketed 1,60

    market 1,65

    T1:-5 pl
    T2:-5 pl

    To net both positions, its -10, if we assume same notional

    CAnt be Accomplished

  5. #5
    Junior Member mrsexceptiok's Avatar
    15
    Thank you for the responses!

  6. #6
    Junior Member elchopo's Avatar
    27
    Since in order for you to make money, somebody else has to loose. Now that's reality

  7. #7
    Since in order for you to make money, someone else needs to loose. Now that is fact
    Exactly. Every time you lose you're paying someone else.

  8. #8
    Junior Member Alpeher's Avatar
    20
    Its a head tickling idea but im afraid it wont work. .

  9. #9
    Junior Member Bluuws's Avatar
    26
    Could you describe it in much more detail to us exactly what you are envisioning?

  10. #10
    Junior Member mrsexceptiok's Avatar
    15
    Can you explain it in much more detail to people exactly what you're imagining?
    Sure. In my opinion it is exceptionally difficult to make money in forex in a consistent way. And a few weeks ago I had a realization that maybe one of the only ways to win is to be able to change the direction of my trade without realizing a reduction. I am not an expert on market mechanisms so I was hoping that when I had a sell trade open on GBPUSD worth (-$100) and I wanted to switch to a buy trade, there might be some type of fitting system which would find different traders that wanted to switch out of the GBPUSD buy trades values around (-$100), and then the machine would execute the switch in case certain parameters given by the traders had been met, such as if the orders were X number of pips away from the current price , if that makes sense.

    I suppose disperse would need to be fully commissioned based in this type of setup and realized about the opening that the of this trade (?) If the lot sizing of the investors' transactions were to be different on the switch. Changing the market a little would be well worth it if it'd work though! I know most people who really enjoy forex and have tried to trade it extensively probably think though that it could be a rather fruing market. We need to try to change that and create something more.

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