Who Wins Who Loses -
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thread: Who Wins Who Loses

  1. #11
    Oanda....

    If brokers control our transactions then why can we trade at the first other than attempt to create money with our investment and why should do we risk our capital?

    Are their brokers out there that are not our to their best interests and the brokerage house they work for?

    Anyone here are a broker that they truly believe is fair?

    Merely asking questions.

    Thanks!!

  2. #12
    Junior Member samu's Avatar
    10
    I have been asking myself the exact same question,
    so I found this with google.

    And I also found a broker who produced this the headline of it is ads:
    tired of betting against your broker
    In addition they were and that's why they formed their
    business within an ECN-broker.

    What will a market maker broker do, if they know that you
    are running a prosperous EA?

    Hedge the rankings somehow? Encourage you to quit?
    Boost the spreads or waits for you until you quit on your own?

    What, if you tell the market maker broker that you've got a level
    in mathematics and programming, will they accept you as client?

  3. #13
    Junior Member ragomi's Avatar
    16
    And I have my view also:

    If you currently a long-term trader (I mean at least 100 pips of TP or around ) - and you trade by yourself, not with EA - I can say that no one broker can keep you. Except cases when they don't draw your balance in any way.

    BUT if you a competitive scalper using super-profitable EA - you'll lose with almost any broker. So choose broker that can give your egy to attract some profits

  4. #14
    The broker doesn't lose anything, whether you make a profit or a loss. Oh yeah, there're way too many college of thoughts on the way the broker operates. A broker makes his money out of the spread difference or commission. .

  5. #15
    I am only relatively new to Foreign Exchange also but from what I understand it's like every other derivative/instrument in that the broker'makes a market'.
    In other words the broker likes to have a buyer for each seller and he makes his money from the spread on the transaction.
    It is quite a lot more complex than that (they have the power to move the market for various reasons that you will shortly become conscious of) when they have enough capital to fulfill the orders.
    Basically they run a book, like a level two display which includes both buy and sell orders and...
    which is not true, Per se.

    Currencies are not Stocks, and you will find various Market players.
    There is not 1 failure to a single winner, Some Market Participants are not in it for profit.

    Central Banks govern according to Authorities interest if the currency is doing exactly what they need. They set rates, money supply etc..

    Some pensions, Capital, Businesses, are more interested in offsetting their risk by means of hedging when holding global assets.

    The speculators, such as proprietary trading in Banks, Hedge Funds, etc are in it for profit on trading activities, and possess the capability to move the market Temporarily taking a lot of risk in the procedure. Consider it.... They move the market = becomes inefficient/imbalanced, another huge hedge or combination of players will Hit them difficult to make the most of that= the market mover gets their ass handed to them.


    Now the broker provides an agency I am not exactly sure how they trade since there is not a lot of literature out there but here is my a priori perspectives on it.

    They DO NOT proceed nor quote prices as they see fit that they must quote Interbank rates (some brokers occasionally will freeze the platform, delay the feed, or stray in the quotes....these are clinics you should report to NFA or anything governing body)

    ARBITRAGE is the thing that keeps brokers and traders, Banks etc Honest.
    Try quoting a rate which strays too far from other traders and you will get hit, finally you've got to return to spot prices, some shade price somewhat but it is better to have 2 brokers and receive two feeds, or check interbank feeds via internet you can see this.

    As soon as you execute your ordersthey choose the other side, if you're a trader that usually makes profit they might cancel it upon aggregate, or simply off set their general exposure by means of a bank.

    I am sure they run statistics on functionality and if you're a liability to them they'll stop taking the other side, but if you lose consistently, why don't you take your money? Makes sense to me.

    They create a market
    they're in it for profit
    that they cannot be overly unscrupulous otherwise they lose customers, get sued, and all that would be capital reduction.

  6. #16
    Junior Member Aitana2231's Avatar
    15
    The broker always win - be sure!

  7. #17
    Junior Member Oxnzanares's Avatar
    21
    It is really important which broker you've got. You will find egies for example that could theoretically make an adequate profit but due to brokers requote policy, wide spreads, etc it would not be possible to make profits.

    Try to opt for the brokers where you have tightest possible spreads, no requote policy, NDD execution model, etc.. The new trend is FX swap model, where trades are delivered straight to a foreign exchange bourse. One of these brokers is Armada Markets for example. I am currently testing their demo, so far looks pretty OK.

    A lot of people talk about ECN brokers. Personally, I believe that ECN is going to be history in certain years. The future will probably be together with the exchange connected FX brokers.

  8. #18
    I am only comparatively new to forex also but from what I know it is like any other derivative/instrument in that the broker'makes a market'.
    In other words the broker likes to have a buyer for every seller and he makes his money from the spread on the trade.
    It is rather a lot more complex than that (they have the power to move the market for a variety of reasons that you will shortly become conscious of) when they have sufficient funds to fill the orders.
    Basically they operate a publiion, like a level two display that includes both buy and sell orders and they try and fit them up since they arrive in.

    This is a very easy view but think about it for a bit and it'll make sense.

    Basically, for every winner there is a loser'on the flip side' of this offer.

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