How much time/size discretion do brokers have when hedging customer position?

[joederp]

Your assumptions could be right when considering brokers that uses DD execution. This is a platform where many bodies are involved including the broker. A DD broker is set up by financial experts like ever every other brokers and they can choose to hedge against you or not to.

Interesting - reading about that now in an FXCM article (http://www.fxcm.com/advantages/forex-execution/compare-execution-types/). Thanks, fp.

It alludes to reactions made by DD counterparties in the 'Order Execution' section: "Scalping is allowed, but FXCM reserves the right to manage its risk by changing your execution type.

While forex isn't the asset class of interest for the question, it is of course ancillary (esp to CME currency futs), and seems a valid contextual example of brokers hedging/building a position in their book off of the customer's, per their discretion.