the broker's strange condition to prohibit certain strategies - page 2
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
Back in the day, if I'm not mistaken, the Rockefellers used this technology: In the days before telecommunications, Rockefeller couriers on horseback delivered important economic news for literally hours (days), not importantly, than others received it. This gave them a chance to play the stock market and make fortunes. Why do I bring this up?
So called "arbitrage", arbitrage advisors are just programs which allow to get rate data from "fast brokers" and use this data with slow brokers. The difference there is literally on the order of 10 seconds, but if you competently place VPS with ping at 10 milliseconds and take the final broker of standard type with fixed fleet from slow broker, then really dumb scalping with good profits of 100% and above per month.
However in essence this is just a high-tech scam. Such programs become quickly known and a number of VPS on their home page are warning about a ban on placing the program. By the way, the idea might have worked well about ten years ago, now the difference in the speed of quotes from brokers is getting smaller and smaller.
This is nonsense, especially about VPS. The deutsche burse has officially allowed arbitrage accounts, right on the exchange itself, as it acts as a clearing organisation between different LPs, thereby aligning prices on different LPs and developing their technology, competition. Others appear to have them as well.
another question: so arbitrage only means low latency....
What about three-point arbitrage? Is there a possibility that it also falls under this forbidden category...? because i wanted to open an account with this broker and for this particular strategy ... triangle trading EURUSD USDCHF EURCHF
another question: so arbitrage only means low latency....
What about three-point arbitrage? Is there a possibility that it also falls under this forbidden category...? because i wanted to open an account with this particular broker and for this particular strategy ... triangle trading EURUSD USDCHF EURCHF
By arbitrage they mean high frequency trading.
If your triangle trading involves high-frequency, they won't give you
another question: so arbitrage only means low latency....
What about three-point arbitrage? Is there a possibility that it also falls under this forbidden category...? because i wanted to open an account with this broker and for this particular strategy ... triangle trading EURUSD USDCHF EURCHF
Triangles only work on really glitchy quotes within the broker, I don't think they'll do the trick. There is no difference between synthetic and major at normal providers of quotes
Well in general, yes, such trading also falls under the concept of arbitrage
They can't physically withdraw forex trades anywhere - the minimum lot on the interbank is $100,000. Not virtual ones (leverage), but real ones.
They have such an opportunity, it's a matter of technology... It's not difficult to organise, using the exchange scheme and work normally with a % of commissions. Some do so, but the commissions bite. as a rule.
But who needs it? If 95% of traders are losing money, the income under the kitchen scheme is now incomparable to what they would have had if they had only taken a commission for transactions.
No, they have such an opportunity, it's a matter of technology... it's not difficult to organise, using the exchange scheme and working normally, having a % of commissions.
But who needs it? If 95% of traders are losing money, then the income under the kitchen scheme is now incomparable to what they would have had, taking only commission on deals
How can you organise the withdrawal of a $100 bet to the forex market using the kitchen scheme?
How can you organise the withdrawal of a $100 bet to the forex market using an exchange scheme?
I mean, bringing together all participants completely inside the broker and hedging via ECN on other LPs, and what's complicated here... everyone has commissions and everyone is happy
it's the same with the market and other artifacts. No clients at the broker - no liquidity, then goodbye broker
I mean, bringing together all participants completely inside the broker and hedging via ECN on other LPs, and what's complicated about it... everyone gets from commissions and everyone is happy
Well, there's nothing complicated about it as long as every millisecond you as a broker create a collective buy or sell order on each instrument general of at least 100,000 quid..
What if as a broker at 14:31:59 you have a buy order in Eurodollar with a total value of $900 at 1.09304? And in the next millisecond you have another 1500 quid at 1.09291?
And what will you do? Withdraw what and at what price?
And who will compensate for the difference in price?
All of this is mythology - an aggregate bid, withdrawal to interbank etc.
Well, there is nothing complicated, if every millisecond you as a broker form a collective buy or sell order for each instrument with a total amount of at least 100 000 quid.
What if as a broker at 14:31:59 you have a buy order in Eurodollar totaling $900 at 1.09304? And in the next millisecond you have another 1500 quid at 1.09291?
And what will you do? Withdraw what and at what price?
And who will compensate for the difference in price?
All this is mythology - an aggregate bid, withdrawal to interbank etc.
Well, what's the problem with a minimum contract of 1k, for example? It's all artificial. And the orders are partially executed according to the available liquidity, like on the stock exchange.
But an interesting moment will occur - arbitrage systems will go under the broker's wing as market makers and price levelers, so some kind of monopoly will appear and it will be difficult to break through into their ranks :)
What's the problem with a minimum contract of 1k, for example? It's all artificial. And also partially execute orders, depending on available liquidity, like on the stock exchange.
Where to make a minimum contract - on the interbank? Interbank operates an exchange without any leverage and earns on commission - an exchange transaction of 1000 quid between banks in different countries will bring them a profit on commission in how many cents?