Price Determination Process on the forex server

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bloved
38
bloved  

1. Hello, i want to know the correct and detailed process of price determinaiton on the forex server.

Inputs we have control are sell(or pending sell), buy(or pending buy) and volumes(lots). That's all. 

How price is determined on the server with those 3-5 variables  are my concern. 

Is there any formula for it? Do TP, SL also affect price?


2. where the server is located? who have control or manage the server?

Individuals can have personal access to the server?

To gain permission to the server, what kind of verification processes should i go ? how much will it cost? 

I want to be free from spreads.


Please help me to get answers here.

Thanks ahead....

whroeder1
17927
whroeder1  
bloved:

1. Hello, i want to know the correct and detailed process of price determinaiton on the forex server.

Inputs we have control are sell(or pending sell), buy(or pending buy) and volumes(lots). That's all.  How price is determined on the server with those 3-5 variables  are my concern. Is there any formula for it?

Do TP, SL also affect price?

2. where the server is located? who have control or manage the server?

Individuals can have personal access to the server?

I want to be free from spreads.

  1. Like every market, when a buyer and seller agree on price. There is no "the forex server." Unlike centralized market (i.e stock market) Forex doesn't have one; every broker has their own. Learn Forex Trading at School of Pipsology - BabyPips.com
  2. You buy at the Ask price and sell at the Bid. Nothing happens until they agree. "That's all."
  3. TP/SL are pending orders. See #2
  4. See #1
  5. Open a demo account with a broker of your choice. Forex Brokers Comparison & Reviews
  6. Can't happen. See #2. Your choice (#5) determines spread and commission.
bloved
38
bloved  
whroeder1:
  1. Like every market, when a buyer and seller agree on price. There is no "the forex server." Unlike centralized market (i.e stock market) Forex doesn't have one; every broker has their own. Learn Forex Trading at School of Pipsology - BabyPips.com
  2. You buy at the Ask price and sell at the Bid. Nothing happens until they agree. "That's all."
  3. TP/SL are pending orders. See #2
  4. See #1
  5. Open a demo account with a broker of your choice. Forex Brokers Comparison & Reviews
  6. Can't happen. See #2. Your choice (#5) determines spread and commission.

my findings :

Tier 1 liquidity providers(market makers) determine the price. They provide brokers with the price on chart.

On what basis and by whom it's determined, not yet clear.

Do they provide the same price? For example, boa and deutshe bank provide the same ratio for eurusd?

If not, how much they are different? (Bid) Price is the same, but only spread is different?

If all tier 1 liquidity providers' (bid) prices are same, where do they receive the price?

Who is the final price source?

bloved
38
bloved  

Wow even bid price is different from each banks...........

i'm shocked....

Bid price is different for all brokers. 


For retail traders to have direct access to tier 1 liquidity provider, how much money should it have or cost ?

Is there any broker which is also Tier 1 liquidity provider ?

Alain Verleyen
36610
Alain Verleyen  
bloved:

Wow even bid price is different from each banks...........

i'm shocked....

Bid price is different for all brokers. 


For retail traders to have direct access to tier 1 liquidity provider, how much money should it have or cost ?

Is there any broker which is also Tier 1 liquidity provider ?

A retail trader who have direct access to liquidity provider is no more a retail trader ;-)

Using MT4/MT5 terminal only you can't have access to liquidity provider.

bloved
38
bloved  
Alain Verleyen:

A retail trader who have direct access to liquidity provider is no more a retail trader ;-)

Using MT4/MT5 terminal only you can't have access to liquidity provider.


Wow... thanks for reply.... i have a few more questions

1.  How may lots boa or deutsche bank trade in a single day? 


2. When they trade with intermediary brokers, do they also provide leverages for intermediary brokers? or just 1:1 ?

How much margin do they require for intermediary?

How much the spread for boa or deutsche bank suggests ? 


3. what 's the relation for lot, volume and tick?

for example, if i put 1 lot (100,000 eur ) for buy( or sell), then theoretically 1 tick goes up(or down) on the chart ?

volume = tick ?


4. When you put in 50 Lots at once, then can you observe how the price moves on the chart?

With several inputs of 50 lots at each time, one can determine market trend?


5. If a retailer makes big money, and he starts his own company, then can he get access to boa or deutsche bank?

What do they require for the deal?


Hope to get answers here, and thanks ahead

Fernando Carreiro
4765
Fernando Carreiro  
bloved: Wow... thanks for reply.... i have a few more questions

1.  How may lots boa or deutsche bank trade in a single day? 

2. When they trade with intermediary brokers, do they also provide leverages for intermediary brokers? or just 1:1 ?

How much margin do they require for intermediary?

How much the spread for boa or deutsche bank suggests ? 

3. what 's the relation for lot, volume and tick?

for example, if i put 1 lot (100,000 eur ) for buy( or sell), then theoretically 1 tick goes up(or down) on the chart ?

volume = tick ?

4. When you put in 50 Lots at once, then can you observe how the price moves on the chart?

With several inputs of 50 lots at each time, one can determine market trend?

5. If a retailer makes big money, and he starts his own company, then can he get access to boa or deutsche bank?

What do they require for the deal?

Hope to get answers here, and thanks ahead

So many questions - so little time!

In his post, @WHRoeder gave you a link (School of Pipsology), which answers most of your questions and teaches you a lot more about Forex than we can possibly answer in a few posts.

Please, follow that link and go read and do the research first!

bloved
38
bloved  
Fernando Carreiro:

So many questions - so little time!

In his post, @WHRoeder gave you a link (School of Pipsology), which answers most of your questions and teaches you a lot more about Forex than we can possibly answer in a few posts.

Please, follow that link and go read and do the research first!


oh... i see i'll then check the site first/

thank you

Alain Verleyen
36610
Alain Verleyen  
bloved:


Wow... thanks for reply.... i have a few more questions

1.  How may lots boa or deutsche bank trade in a single day? 

No idea, ask them ;-)

Maybe it's publicly available somewhere...try Google.

2. When they trade with intermediary brokers, do they also provide leverages for intermediary brokers? or just 1:1 ?

How much margin do they require for intermediary?

How much the spread for boa or deutsche bank suggests ? 

Central banks don't use brokers, they trades directly through EBS/Reuters platforms.

Eventually they are the broker.

Not sure what you are asking with other questions.


3. what 's the relation for lot, volume and tick?

for example, if i put 1 lot (100,000 eur ) for buy( or sell), then theoretically 1 tick goes up(or down) on the chart ?

volume = tick ?

lot and volume are the same, expressed in different way.

A tick is the smallest variation in price. Price varies according to offer/demand. So there is a relation between traded volume and tick(s), if you BUY 1 lot as market price and there is only 0.5 lot available at that price, the price will move tick by tick until your order is filled.

Of course it's just an example, on Forex a retail trader can't move the price, traded volumes are huge and retail traders very tiny.

4. When you put in 50 Lots at once, then can you observe how the price moves on the chart?

With several inputs of 50 lots at each time, one can determine market trend?

Theoretically yes, but that doesn't happen in Forex (see previous answer).  If you trade some instruments (not Forex) with lower available volumes, yes you could observe it.

5. If a retailer makes big money, and he starts his own company, then can he get access to boa or deutsche bank?

What do they require for the deal?

Very unlikely, the investments needed are huge.

Try to ask them ;-)

Hope to get answers here, and thanks ahead

I tried. Hope it helps. Very good questions by the way.

bloved
38
bloved  

A tick is the smallest variation in price. Price varies according to offer/demand. So there is a relation between traded volume and tick(s), if you BUY 1 lot as market price and there is only 0.5 lot available at that price, the price will move tick by tick until your order is filled.


Thanks a lot for replay and interest... i found something strange, so i seek advices again.

Indicator such as TicksSeparateVolume.mq4, defines :

uptick = volume +(close_price - open_price)/(2*pipette) 


Above definition is correct? 

Volume and price has so simple relation.  

Can we get data for Bull ticks and bear ticks on mt4?


Thanks ahead and Good weekends~~~

Enrique Dangeroux
435
Enrique Dangeroux  
bloved:


Can we get data for Bull ticks and bear ticks on mt4?



Maybe this topic answers your question https://www.mql5.com/en/forum/212349


Not sure if it is MT5 or MT4 though.. but things should be similar.

TICK_FLAG_BUY and TICK_FLAG_SELL simultaneously set in MqlTick structure
TICK_FLAG_BUY and TICK_FLAG_SELL simultaneously set in MqlTick structure
  • 2017.07.31
  • www.mql5.com
Hi all, When I use CopyTicks(), I often get some ticks with flags = 96 in their MqlTick structure...
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