Are there drawbacks to working with such a liquid market?

[Diesis]

Quote from fluttrader:

they have to pay out profits to a trader out of their own pockets(when trading on an exchange ,profits come out of the pockets of another trader somewhere in the world)

Sorry, but I don't understand this ...

Why they have to pay out of their pockets for profits made with a trade between their customers, if profit from one customer is equal to the loss of another customer ?

 

[cabletrader]

Quote from fluttrader:

You quote me from 2 different posts in a different context..

Even if a market maker DOESN'T hedge themselves, they have NO RISK
That so called "risk" is that they have to pay out profits to a trader out of their own pockets(when trading on an exchange ,profits come out of the pockets of another trader somewhere in the world), like I said, they even let profitable trades disappear or say that your profits came from "illegal"(scalping) trading and that those trades are not valid (I am speaking out of personal experience)

MOST forex market makers want more than just the spread and that explains all the games they play to steal your deposit

lol, this is just too funny, do you have any idea how marketmakers work

If you got your ass handed to you it was probably your own fault, but like the majority of people who lose money they need to blame someone else, the broker, the market, their ISP, their PC, anyone but themselves!

 

[fluttrader]

Quote from Diesis:

Sorry, but I don't understand this ...

Why they have to pay out of their pockets for profits made with a trade between their customers, if profit from one customer is equal to the loss of another customer ?

When you buy X amount and there is no other customer at the other side selling X amount at that very moment, who do you think is at the other side of your trade ? Right, your "friendly" MM , got it ?

 

[fluttrader]

Quote from cabletrader:

lol, this is just too funny, do you have any idea how marketmakers work

If you got your ass handed to you it was probably your own fault, but like the majority of people who lose money they need to blame someone else, the broker, the market, their ISP, their PC, anyone but themselves!

My best MM friend ,

I didn't say they are ALL like that but MOST, I am not complaining anymore with my present "brokers"..

What "broker" do you use ?

 

[Diesis]

Quote from fluttrader:

When you buy X amount and there is no other customer at the other side selling X amount at that moment, who do you think is at the other side of your trade ? Right, your "friendly" MM , got it ?

I didn't know this.
What I knew is that if there is no counterpart among the broker's customers, the order is sent to the outside market. If any counterpart is found, then there is a requote.
Perhaps are you telling that Brokers and Market Makers are different entities, and so, have different duties ?
The broker I'm evaluating now is not a MM.

Question: MM are not an exclusive of the regulated markets ?

 

[cabletrader]

Quote from fluttrader:

My best MM friend ,

I didn't say they are ALL like that but MOST.

What "broker" do you use ?

It's not really relevant who I use, suffice to say it's a fixed spread retail marketmaker, most of the mainstream marketmakers operate a similar business model along the lines of a bookmaker. Nothing wrong with that.

 

[cabletrader]

Quote from Diesis:



The broker I'm evaluating now is not a MM.

If you're trading spot then chances are you're trading with a marketmaker, he's on the other side of all your trades irrespective of who else is buying or selling at that exact moment. It's no big deal, contrary to the misguided conspiracy theorists among us he doesn't move prices just so he can collect your few bucks

Which company is it, someone will probably give you a heads up on the things to watch out for.

Please don't tell me it's a mini-account with an ECN-style broker who promises your orders are all STP, lol

 

[Chood]

Quote from cabletrader:

. . . It's no big deal, contrary to the misguided conspiracy theorists among us he doesn't move prices just so he can collect your few bucks . . .

I don't believe your post, and I'm not a conspiracist.

 

[cabletrader]

Quote from Chood:

I don't believe your post, and I'm not a conspiracist.

I'm getting a deja vu feeling, haven't we already done this?

But if you've got a valid point to make (or invalid, it doesn't seem to make any difference here!) then feel free to give examples supported by something tangible.

Edit: Knew it rung a bell

 

[Diesis]

Quote from cabletrader:

If you're trading spot then chances are you're trading with a marketmaker, he's on the other side of all your trades

<noob>
So, if I insist ( ) on trading spots, the first thing to look for, is a broker that isn't a MM ?
How do I know this ?
For example, Ducascopy states on his website that they are not MM, but how do I found out if this is true ? Is there a list of MM or something like this ?
</noob>