How interbank forex works

[Andrey Luxe]

Everyone is talking about interbank and its advantages and reliability. But I don't fully understand, or rather understand, but I would like a more detailed description.

Basically, we are trading in the kitchen anyway... in the big kitchen... in the bank... from whom we take the money, right?

If we trade through a broker, who withdraws all deals to the liquidity provider, then we take the winning money not from the broker, but from the liquidity provider (who cannot take our deals anywhere) and it is clear that in this case we work with the kitchen, but with the big one.

If I am wrong, explain in detail how the interbank system works.

[Mikhail Filimonov]

Andrey Luxe:

Everyone is talking about interbank and its advantages and reliability. But I don't fully understand it, or rather I do, but I would like a more detailed description.

Basically, we are trading in the kitchen anyway... in the big kitchen... in the bank... from whom we take the money, right?

If we trade through a broker, who withdraws all deals to the liquidity provider, then we take the winning money not from the broker, but from the liquidity provider (who cannot take our deals anywhere) and it is clear that in this case we work with the kitchen, but with the big one.

If I am wrong, explain in detail how the interbank system works.

How can I explain anything to you if you are writing in the wrong section?

[Andrey Luxe]

Михаил:
How can you explain anything if you are writing in the wrong section?

Which one was it supposed to be?

[Mikhail Filimonov]

Andrey Luxe:
Which one was it supposed to be?

Automated trading systems.

Or a general discussion.

[Alexey Busygin]

Andrey Luxe:

Everyone is talking about interbank and its advantages and reliability. But I don't fully understand it, or rather I do, but I would like a more detailed description.

Basically, we are trading in the kitchen anyway... in the big kitchen... in the bank... from whom we take the money, right?

If we trade through a broker, who withdraws all deals to the liquidity provider, then we take the winning money not from the broker, but from the liquidity provider (who cannot take our deals anywhere) and it is clear that in this case we work with the kitchen, but with the big one.

If I am wrong, explain in detail how the interbank system works.

The interbank system, works through swift.

[Yousufkhodja Sultonov]

Alexey Busygin:
The inter-bank system, works through swift.

All banks also focus on forex, or rather forex is the inter-bank exchange, in my opinion. And as for who pays out in the end, I think all holders of the asset are paid out or acquired. All cash and non-cash assets appreciate or lose in value, which makes it possible to pay profits and cover losses.

[Alexey Busygin]

Yousufkhodja Sultonov:
All banks also focus on forex, or rather forex is an inter-bank exchange, in my opinion. As for who pays out in the end, I think that all holders of a given asset pay out or buy in. All the cash and non-cash of the asset goes up or down in value, which makes it possible to pay out profits and cover losses.

forex is run by printing presses

[[Deleted]]

Andrey Luxe:

Everyone is talking about interbank and its advantages and reliability. But I don't fully understand it, or rather I do, but I would like a more detailed description.

Basically, we are trading in the kitchen anyway... in the big kitchen... in the bank... from whom we take the money, right?

If we trade through a broker, who withdraws all deals to the liquidity provider, then we take the winning money not from the broker, but from the liquidity provider (who cannot take our deals anywhere) and it is clear that in this case we work with the kitchen, but with the big one.

If I'm wrong, explain thoroughly how the interbank system works.

Read - there is enough information here about how forex works

https://www.mql5.com/ru/forum/12342

[Ilnur Khasanov]

Moderators, remove this thread from this section

[Maxim Dmitrievsky]

Andrey Luxe:

Everyone is talking about interbank and its advantages and reliability. But I don't fully understand it, or rather I do, but I would like a more detailed description.

Basically, we are trading in the kitchen anyway... in the big kitchen... in the bank... from whom we take the money, right?

If we trade through a broker, who withdraws all deals to the liquidity provider, then we take the winning money not from the broker, but from the liquidity provider (who cannot take our deals anywhere) and it is clear that in this case we work with the kitchen, but with the big one.

If I am wrong, explain in detail how the interbank system works.

Depending on the type of account and the amount, you are either taken out to interbank or not. For example vDe and ndd accounts are not taken out, while stp is, and on stp there is no conflict of interest, as brokers (docs) explicitly state, thus confirming the fact that on other types of accounts there is a conflict of interest, i.e. you take the money from the docs if you win. In the case of stp accounts - you take money through a liquidity provider, from other counterparties of the DT (other brokers), from their segregated positions, or positions of large traders (almost like in stock trading). And there can be several liquidity providers, who in turn also interact with each other.

[Andrey Luxe]

Brokers will tell us about ECN and other types of accounts that there is supposedly no conflict of interest. They do not care whether we make money or lose.

And we may never know the truth until we get a job at such a company ourselves, so we can learn some of these secrets.