He claimed to be trading 200.000 contracts in one day and then close them all within 1 minute.
You have to be crazy to believe this is real.
The broker takes the other side, they may choose to offset their risk, they don't have to.
carpe diem
- Thread starter DELTAONE77
- Start date
He claimed to be trading 200.000 contracts in one day and then close them all within 1 minute.
You have to be crazy to believe this is real.
The broker takes the other side, they may choose to offset their risk, they don't have to.
yes, and this is exactly what i said. they take the other side of your trade, that is they are the counterparty in the contractual sense. but if they are not idiots, they will offset most of the risk and live from the commissions (and probably from trading against clients which they know to be losers).
if they offset risk and match clients internally (or e.g. hedge it on futures market), then they have another trader that has taken the contrary position to you. and in that sense you could say, that this other trader is trading against you, but actually everyone is trading only "against" the broker and the broker's business would be to keep it balanced.
Which would of course be hard or impossible if someone trades 250.000 contracts. I don't know about that (and I don’t know if it’s real, but as far as i can tell he has a proven history of knowing how to trade).
But IC, and other brokers i know, don't just match internally (one single broker surely couldn't match 200k CFDs internally). they have their big liquidity providers or "market makers" (JP Morgan, Alpha Capital Markets, Philipp Capital are some names I know), who are quite big and interconnect many of those CFD- and forex-brokers. I believe they are big enough and operate in the described way: match corresponding trades internally and hedge the surplus on a "real" market. So in that sense there is some kind of centralization in the CFD markets as well. I would not say that it's impossible for very large CFD orders to be executed in such a network of liquidity providers. But I believe if someone closes 250 000 CFDs with one click, it could (should?) have a visible effect in the futures market. Question is whether the big liquidity providers are so big that they can swallow that without offsetting it outside.
(i don't know what IC does and how they operate, but I think they have two companies and one is Australian. For whatever reason. No one says that this is not a rigged business etc.)
Knowing how to trade doesn't make it real. His calls can be 100% correct, still wouldn't mean anything if it is demo.
A lot of traders are profitable in demo and fail beyond believe in real trading.
yes, true, and as i said: i don't know it, and though i'd like to know if it's possible to trade 150.000 CFDs, i am not into checking other people's accounts. but i don't assume the worst of people who i don't know. haven't seen him trying to sell anything. if someone tries to sell something, then yes, put him on a test. but apart from that, what's so offensive here? that someone is claiming to be a live trader and you guys believe it to be only demo? ok, but why so aggressive? haven't seen a good point against it, only "i don't believe it", "bullshit" etc., but mostly from people who seem to know little about the CFD-market. no offense, but i have this impression here. (the 2000s bucket shop times are over mostly). if it can be shown that it's impossible to open a 100'000 CFD position, then good, and the case can be closed.
I myself have only made this one claim here – about a structural similarity between how CFD markets and futures exchanges work (acting as counterparties in a legal contract) – and have been insulted mostly. Not exchanging arguments, but calling people fucking idiots, fools, to fuck off, to kill themselves etc. What are the reasons for such hostility, not against a proven asshole but against a complete stranger?
There is nothing offensive by doing so. But having the need to lie on an anonymous forum is just pathetic, specially if one fails at even doing that ...
I am not one to insult easily (you can even barely call it insulting, at least what i am doing) , but i just don't like liars
.There is no further proof necessary here, it's just impossible. Closing 200.000 CFD contracts in one minute with barely any slippage or causing no price movement, what more proof do you need? The YM futures barely trade that amount of volume in an entire day.
Nobody knows except IC Markets.
However as said before, this is obviously demo, not real money.
Apparently there's a guy from FF claiming I'm pretending to be him, yeah surely he's copyrighted the nickname 'CryptoSurf'..., Delta, you gotta be smarter with your sock puppets....
You’re the one who originally stated here you came from FF so yeah, you pretended to be me. And if you had a clue and saw my posts on FF, then you would know ive never been a fan of D1.