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Brokers dont like News Trader?
- Thread starter vortextrader
- Start date
There is no broker on the Forex world which will let you trade news. Why? Because Forex brokers are market makers. The full explanation of what a MM means is beyond the scope of the thread but in a nut shell when you gain the MM lose and when you lose they gain. The MM can only protect itself from losses ( meaning your gains) by hedging your positions. In news time the volatility can be so big making very difficult for the broker to hedge. You can get lucky and make a big gain trading like that, and that is a no no for your broker.
How about forex futures?
Take what the guy is writing there with a grain of salt. As everything you read on FF.
When you trade with a broker like Oanda for example which is a market maker. ALL trades are handled internally not just some of the trades as the guy suggest in the thread. There is no reason for the MM to use their liquidity providers because pretty much all retail traders end up blowing their accounts. MM don't even actually need liquidity providers. The only reason they have one is to fulfill the CFTC and NFA bull regulations. The reality is that if you trade Forex your money never actually hits the foreign market. Some brokers a while ago started to be creative about it and sell the idea that they actually would send your order to the interbank realm. They used to call themselves ECN brokers. But at the end of the day it was pure BS. FXCM claimed to be a "true ECN broker" ( what ever it means) by sending your order directly to the banks. I really doubt they did, because if it was the case why they got margin called in the Swiss central bank event? Anyways as far as I know every time and everywhere you trade Forex you do it though a proxy. Your order is handled 100% internally by the MM and your only connection to the real 5 trillion a day foreign exchange market is PRICE.
Price!? As published by what authority? My understanding is that this was always over-the-phone kind of market and I assume it's still mostly is. I don't really understand how people trade it, but I don't understand lots of things.your only connection to the real 5 trillion a day foreign exchange market is PRICE.
If you are a nerd like me ( LOL) this post may interest you!! It is old but IMHO still valid
https://www.forexfactory.com/showthread.php?t=522046&page=7
https://www.forexfactory.com/showthread.php?t=522046&page=7
Forex is traded exclusively among or via banks. It used to be over the phone but today it is done electronically. This video is a classic and will give you a good idea about how it used to be.Price!? As published by what authority? My understanding is that this was always over-the-phone kind of market and I assume it's still mostly is. I don't really understand how people trade it, but I don't understand lots of things.
Bro how about forex futures? is it safe to trade news with futures?broker will allow nes trading in forex futures, isnt it?
Bro. I am not questioning your intellegence . What I trade is after I made long observervation of price action price to news release (any red news in FF) and not what i read or hear from someone else.
Insider info is not needed. PA,correlation is all we need prior to news release. PA make the news not vice versa,anyway lets get back to the original topic.
Insider info is not needed. PA,correlation is all we need prior to news release. PA make the news not vice versa,anyway lets get back to the original topic.
The topic was trading news, not trading PA. Maybe you meant fx brokers don't like consistently profitable traders? Hopefully you will get the answer, but I no longer understand the question.PA make the news not vice versa,anyway lets get back to the original topic.