Real work on MT5 NDD - page 13

[hrenfx]

Karlson:

"Pure ECNs are exchanges. In Forex there are practically no pure ECNs, there is an ECN/STP scheme where there is internal liquidity (ECN) and external liquidity (STP)".

That's why I am personally happy with MT5 certifications on exchanges.

I forgot to mention, on exchanges and pure ECN something can never happen: zero and negative spreads (not fictitious) on the same symbol.

[---]

hrenfx:

negative spread

Can you tell me more about the order execution at this spread?

[hrenfx]

Ask_LP1 < Bid_LP2. Accordingly, BUY in LP1 and SELL in LP2 is done. Normal aggregator execution.

[---]

hrenfx:
Ask_LP1 < Bid_LP2. Accordingly, BUY in LP1 and SELL in LP2 is done. Usual aggregator execution.

So we buy cheaper and sell more expensive? Nothing changes?

[hrenfx]

Yep, classic arbitration.

[---]

hrenfx:
Yes, classic arbitrage.

I'm just asking why.

I recently got access to the bank's quotes. They do have negative spreads, but rarely. Most often it is zero.

That is why I am interested in how orders will be executed when there is such a spread.

In general, I believe you, as I am much more experienced in these matters.

[hrenfx]

sergeev:

I recently got access to the bank's quotes. They do have negative spreads, but rarely. Most of the time it is zero.

That is why I wanted to know how orders will be executed with such a spread.

If the bank receives quotes from a prime broker, it is unlikely to arbitrage on execution. If it aggregates on its own, it can.

There are a lot of nuances and very interesting studies on arbitrage.

[Andrei01]

hrenfx:

If the bank receives quotations from a prime broker, it is unlikely to arbitrage on execution. If it aggregates on its own, it can.

Actually, it is very strange to have arbitrage between large aggregators because arbitrage is a win-win and simple strategy.

[hrenfx]

Andrei01:
Actually, having arbitrage between the big aggregators is very strange because arbitrage is a win-win and simple strategy.

If you manage it and you don't get rejacked, yes.

[Andrei01]

hrenfx:
If you make it in time and don't get redirected, yes.

I don't think the banks have a problem with speed, but outsiders should have a problem, not to mention the commission, which apparently the banks don't have.