NATURAL INTELLIGENCE as the basis of a trading system - page 77
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
So it turns out that when most become SELL on some currency (namely a currency, not a currency pair), and those bids are satisfied, the price of the currency goes up.
Plagiarism! There was a genius on here already, who has latched onto this Nobel Prize-worthy idea - "when everyone starts selling, the price goes up".
Bids to sell/buy are always satisfied - it's called liquidity.
I wonder who he is?
Can I get a link?
So it turns out that when most become SELL on some currency (namely a currency, not a currency pair), and those bids are satisfied, the price of the currency goes up.
Plagiarism! There was a genius on here already, who has latched onto this Nobel Prize-worthy idea - "when everyone starts selling, the price goes up".
Bids to sell/buy are always satisfied - it's called liquidity.
The price goes up when the Central Bank starts satisfying sell orders.
In principle, the price will not necessarily rise, if there is a decline, it can only slow down.
Bids to sell/buy are always satisfied - this is called liquidity.
Hmmm...
Have all your bids always been satisfied? This is a non-sarcastic question, have you never received a "No price", etc. from a DC?
And another question, if "all requests are always satisfied", by whom are they satisfied?
You have, for example, placed an order SELL EURCHF for 10 000 lots, and at the same time the counterparty placed 1 000 lots. Who will be your counterparty for the remaining 9 000 lots? Explain it to me, or I will die a fool.
You have, for example, placed an SELL EURCHF order for 10 000 lots, while the counterparty has placed 1 000 lots at the same time. Who will be your counterparty for the remaining 9 000 lots? Please, tell me, or I will die a fool.
All bids are executed by the Market Maker, so he will take care of the rest of the lots. For this, he will put a price that you may not like. In forex, you do not trade against each other, but friend-to-friend. The market maker takes on the task of providing liquidity, for this he is the market maker. If there is no liquidity, it is not a market. Or rather, it is not a market where there is bread for speculators.
A DC is a casino on forex prices, if there is no trading on an instrument, then it does not let you "play" on that instrument. If you will be a real client, who really wants to buy this instrument, the Market Maker will give you the price and ensure delivery. I.e. bids are always satisfied.
The important thing is the price. Even mortgaged bonds that are rapidly depreciating in the subprime crisis have buyers. These are speculators who hope the price is already low enough. Even on Black Tuesday there was someone buying. If the bids are not met, it's a total fucked up economy, it's a default. If bids for any currency are not fulfilled, then that country is no longer on the map.
You have, for example, placed an SELL EURCHF order for 10 000 lots, while the counterparty has placed 1 000 lots at the same time. Who will be your counterparty for the remaining 9 000 lots? Please, tell me, or I will die a fool.
All bids are executed by the Market Maker, so he will take care of the remaining lots. For this, he will put a price that you may not like. In forex, you do not trade against each other, but friend-to-friend. The market maker takes on the task of providing liquidity, for this he is the market maker. If there is no liquidity, it is not a market. Or rather, it is not a market where there is bread for speculators.
A DC is a casino on forex prices, if there is no trading on an instrument, then it does not let you "play" on that instrument. If you will be a real client, who really wants to buy this instrument, the Market Maker will give you the price and ensure delivery. I.e. bids are always satisfied.
The important thing is the price. Even mortgaged bonds that are rapidly depreciating in the subprime crisis have buyers. These are speculators who hope the price is already low enough. Even on Black Tuesday there was someone buying. If the bids are not met, it's a total fucked up economy, it's a default. If bids for any currency are not fulfilled, then that country is no longer on the map.
OK, but if I put in a bid for 1,000,000 lots, then who satisfies me? If I get a price, put in an order for the volume I require, and I get new prices in return, is that a "satisfied order"?
You see, market makers, as part of meeting bids, can and do act under certain agreements. Those agreements govern their financial relationships with central banks and financial institutions acting as central banks. That is, no matter how you spin it, streams flow to the central bank. Naturally, as long as the central bank is not functioning, the opposite operations can run up and the imbalance will dissipate on its own.
PapaYozh писал (а):
Хорошо, а если я выкачу заявку на 1 000 000 лотов, тогда кто меня удовлетворит?
That's when "quite by chance" the price will go against you and you will be fully "satisfied" :-)
PapaYozh wrote (a):
OK, so if I roll out a bid of 1,000,000 lots, then who will satisfy me?
That's when "quite by chance" the price will go against you and you'll be fully "satisfied" :-)
That's exactly what I was talking about. After all, that 1,000,000 lots can add up cumulatively and even over a period of time, rather than "suddenly".
But the point is that this price move "against me" will not only not be random, but on the contrary, it is a pattern.
Imagine that I have CHF 1,000,000,000 and I need to convert that entire sum to JPY. Both currencies are freely convertible, my request will be granted (delivery within 3 banking days), but what will happen to prices? In my opinion, the CHF will go up in price (as there will be less of it in circulation) and the JPY will go down in price.
OK, but if I roll out a bid for 1,000,000 lots, then who satisfies me? If I get a price, put in an order for the volume I want, and I get new prices in return, is that a "satisfied order"?
You see, market makers, as part of meeting bids, can and do act under certain agreements. Those agreements govern their financial relationships with central banks and financial institutions acting as central banks. That is, no matter how you spin it, streams flow to the central bank. Naturally, as long as the central bank is not functioning, the opposite operations can run up and the misalignment will dissipate itself.
How many market makers are there in the world and how many central banks are there? Central banks are big clients, but only clients of market makers.
An order at the price you see on the screen is only executed in a casino. In real trading in the forex or stock market, the price you see on the screen is the price of the last transaction, it is history, it is all in the past, this price no longer exists, no trades can be made at this price. You put in a bid and get a price for it, then you decide whether to take it or not, if you say take it, it's a satisfied bid, the market maker guarantees it.
If you want to place a bid of a million lots, you have to show a deposit of the full bid, because the casino leverage does not work here, then you will be dealt with and satisfied, you can rest assured.
That's exactly what I was talking about. After all, that 1,000,000 lots can add up cumulatively and even over a period of time, not "suddenly".
What do you mean by that? Bids move the price up. The more of them, the stronger the price moves in the direction of the bids, not against them.
There was a clown with the humble name of Galois who also thought the price moves against the trades. Search rules.
That's exactly what I was talking about. After all, that 1,000,000 lots can add up cumulatively and even over a period of time, not "suddenly".
What do you mean by that? Bids move the price up. The more of them, the stronger the price moves in the direction of the bids, not against them.
There was a clown with the humble name of Galois who also thought the price moves against the trades. Search rules.
Once again, but slowly.
I successively send orders for BUY (let it be 10 000 orders of 1000 lots each), they are satisfied, and, following your logic, the price goes up. Then I go out with SELL, and all is well. At whose expense?
Your reasoning is not about FOREX, but about securities trading.