Help Please - How Market Maker Brokers really work
Good day and well met.
Quick question please. How do market makers work?
I understand that they take positions against you, to hunt your stop losses and force a margin call to the unwary trader. The questions I have and really appreciate anyone shedding light on this for me are:
1. Are the Market Maker taking a personal position against me (alone), or a position against everyone who enters a "sell" or "buy" order the same as I have done?
1b. When they take a position against me, and force the price the opposite direction from my order, are they giving each trader a "personalized" market
1c. If its a position against everyone that sees the same signals as I used to enter the trade, do they take two positions? One bullish and one bearish to offset everyone?
2. Since they "force" the market to be bull or bearish (temporarily), what are the rules and time line to return it to match the "real" market?
3. By default, would it not be smart to open 2 accounts on 2 different brokers, and by watching the real market, use this against the market maker account by knowing where the price will return to?
Thank you so much for your help.
ShaneWow, it seems a nice idea Shane. I'm waiting for responses from experienced members...
Sangmane
Read through this information thoroughly and you will fully understand the diffrence between a market maker,stp,or ecn broker.All the known and unknown brokers are included on this list.ECN brokers list | ECN/STP Forex brokers.
Also see hereForex Market Makers | Forex Brokers 
MP -- well, have i got what you want
I could sit here and explain for the next 50 paragraphs or send you to where that information already exists.
Im sending you to a site where I teach forex trading, not to gain you as another student (its free anyway) but because the reading on this subject would require far too much cutting and pasting for me to attend to at this moment on a sunday.
you WILL have to register, and im sorry, but you will come up with a notice telling you that there is no information available unless you do.
so simply register (free and no spam) and go to that link and you will definitely get all your answers then come back here and continue as you were.
enjoy and trade well
mp
Good day and well met.
Quick question please. How do market makers work?
I understand that they take positions against you, to hunt your stop losses and force a margin call to the unwary trader. The questions I have and really appreciate anyone shedding light on this for me are:
1. Are the Market Maker taking a personal position against me (alone), or a position against everyone who enters a "sell" or "buy" order the same as I have done?
1b. When they take a position against me, and force the price the opposite direction from my order, are they giving each trader a "personalized" market
1c. If its a position against everyone that sees the same signals as I used to enter the trade, do they take two positions? One bullish and one bearish to offset everyone?
2. Since they "force" the market to be bull or bearish (temporarily), what are the rules and time line to return it to match the "real" market?
3. By default, would it not be smart to open 2 accounts on 2 different brokers, and by watching the real market, use this against the market maker account by knowing where the price will return to?
Thank you so much for your help.
ShaneRetail brokers generally take a position 'against' you to provide you with an opportunity to trade with a very small amount of money - compared with the major banks who comprise the real market. If they're legit, they will offset their trades with their clients with matching trades on the real market, so they will have limited exposure. Then they can make their money of off the spread they charge and they won't be concerned whether you win or lose.
If they're NOT legit, though, they may manipulate the prices they quote in order to make you lose, so they can take your money. Figuring out which broker you can trust is one of the most important parts of retail forex trading.
Retail brokers generally take a position 'against' you to provide you with an opportunity to trade with a very small amount of money - compared with the major banks who comprise the real market. If they're legit, they will offset their trades with their clients with matching trades on the real market, so they will have limited exposure. Then they can make their money of off the spread they charge and they won't be concerned whether you win or lose.
If they're NOT legit, though, they may manipulate the prices they quote in order to make you lose, so they can take your money. Figuring out which broker you can trust is one of the most important parts of retail forex trading.
Those are bucket shops not brokers
If they are normal brokers they should not do that. You can see that by the commission : if it is always negative, that is a bucket shop
Those are bucket shops not brokers
If they are normal brokers they should not do that. You can see that by the commission : if it is always negative, that is a bucket shop
Can you explain a bit more about,how to test/check normal broker verses bucket shop by commission or by some thing else ?
regards
Can you explain a bit more about,how to test/check normal broker verses bucket shop by commission or by some thing else ?
regards
It shows their general way of treating the customers
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Good day and well met.
Quick question please. How do market makers work?
I understand that they take positions against you, to hunt your stop losses and force a margin call to the unwary trader. The questions I have and really appreciate anyone shedding light on this for me are:
1. Are the Market Maker taking a personal position against me (alone), or a position against everyone who enters a "sell" or "buy" order the same as I have done?
1b. When they take a position against me, and force the price the opposite direction from my order, are they giving each trader a "personalized" market
1c. If its a position against everyone that sees the same signals as I used to enter the trade, do they take two positions? One bullish and one bearish to offset everyone?
2. Since they "force" the market to be bull or bearish (temporarily), what are the rules and time line to return it to match the "real" market?
3. By default, would it not be smart to open 2 accounts on 2 different brokers, and by watching the real market, use this against the market maker account by knowing where the price will return to?
Thank you so much for your help.
Shane