Secrets of your broker - page 2

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a stop is part of a strategy, if there is no strategy, there is nothing to do in the market at all
 
In forex trading, certain principles of dealing centres have already been established. They establish the rules of interaction with traders, as well as the order and form in which traders' positions are placed in the market. This system creates certain technologies according to which the trading process is built.

What are those technologies? The simplest operating method of the brokerage company is based on the assumption that in the end the trader will lose all of his funds. This method is called the "kitchen". Usually this method is used by inexperienced beginners who do not understand the intricacies of trading and use aggressive methods. This is the consequence of unprofessionalism and leads to the loss.

So how do dealing robbers cheat?

Using this method, dealing centres record all client's positions in cold blood. The calculation is simple enough and consists in the fact that by making thoughtless and often foolish steps, the clients themselves create conditions for the complete depletion of their personal accounts. The DCs using the "kitchen" method will only push their traders to make a lot of deals. As a rule, the staff of such dealing centres consists of the non-professional employees, who cannot competently organize the work of the centre. As of today, the post-Soviet countries are a wide field for operation of such dealing centres. The reason for this is precisely the low level of professionalism.

The next technology is called "brokerage". Its essence is to attract as many clients as possible to the exchange market, who will perform a large number of transactions. As a result a big mass of money is being made. At the moment of formation of this mass of money the broker makes a "shift" of the market with the help of different methods, as the result of which the situation turns against the clients' positions.

This allows brokers to earn extra money, in addition to extended spreads and commissions. The point of market shifting is that the brokerage companies provide their clients with knowingly worse quotes than are available in the market at the moment. This allows the dealers to receive additional profit due to the difference between the quotation provided to the trader and its real value at the current moment.

The next technology is called "fixing of losses". Here brokers make a profit by offering positions that remain open for several days. The broker holds a client's position open until the position reaches a critical value that is often comparable to a stop level. The value of these values can be independently determined by each brokerage company. It is the trader's losses that become the source of additional income for the broker.

There are also other ways to directly cheat traders. For example, some fraudulent firms when registering the client, trade on his behalf only "by word of mouth". In reality, the DCs just use the money received from the client for their own purposes, providing clients with all attributes of the real trading in the form of statements.

By describing these techniques I am not trying to discourage potential traders from participation in currency trading. On the contrary, this information will help protect you from dealing with dishonest dealers. I urge you just to be cautious and choose dealing centres carefully. Therefore, it is recommended for this purpose to look for a reliable broker in the DC Forex rating, there you can also read reviews of brokerage firms.
 
Myth63:
no brokerage house has the money to move the price by 1 pip
Why would he have the amount of money if he could "draw" it? :-D

All in all, it is true! If he wants to move the price, he should fill the limits on the way. And the sums there are pretty big and most likely with a small leverage.)
 
many letters again..... =) reading =)
 
mmmoguschiy:
Why would he have the amount if he could "draw" it? :-D
the max picture is the 7 pips i've seen.... and i don't like trading with a stop loss of 20 pips
 

for simplicity of judgement...

every broker has 2-3 types of accounts, open all three, download 3 terminals for each account and put money into all... you don't have to open any trades. open all three terminals, on three devices and just watch....

 
Myth63:
the maximum picture is the 7 pips i've seen.... and i don't like trading with a stop of 20 pips
i don't know where you get that from? price can move as much as you want within a bar! But in the end this will not show up on the picture! And your low-price strategies they rotate around the axis of their inter-axis :-D
 
mmmoguschiy:
What makes you say that? The price can move as much as it wants within a bar! The DC can even move the price within a bar in such a way that your stops will go to hell and it will look completely unnoticeable in the overall picture! And your low-peak strategies they've been spinning around the axis of their between-legs :-D
do and see....
 
Myth63:
do and see....
how much I've done, how much I've redone... :-D

You better reread my message again and think about it! No matter how many accounts you open, you won't see the reality! The price on the ECN is different from the standard. The price on one broker is different from the other. Their charts are almost identical with some exceptions
 
mmmoguschiy:
how much I've done, how much I've redone... :-D

You better reread my message again and think about it! I don't care how many accounts you open, you won't see the reality! The price on the ECN is different from the standard. The price on one broker is different from the other. At the same time their charts are almost identical with some exceptions
ECN ok =) it's made to reduce the scalp level. you pay a commission instead of a wider spread. ECN is essentially a guaranteed broker's earnings...
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