Is forex market controlled by someone? - page 50

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banging_the_close_-_fix_orders_and_price_manipulation.pdf

Recent years have seen several high-profile cases of manipulation of benchmark prices in financial markets, like the manipulation of the 4 pm fix for foreign exchange rates. A trading practice known as "banging the close" has featured in many of these cases. In a model of trading behavior and benchmark prices, I show that this practice occurs naturally as the solution of an optimal order execution problem. I use the model to study collusive behavior amongst traders, and extend the framework to allow for investors who rationally place fix orders. The results show the dangers of seemingly innocent information sharing between traders, and that a suggested change in the structure of currency benchmarks would likely be highly effective in alleviating disruptive trading practices.
 
tropicalrecon:
Yes it is manipulated, and the people doing it use news reports to justify their actions. MT4 has a plugin for the dealer, lets them see open float, who is in negative, etc. They will manipulate price if they see enough stops in one area.

I prefer to do my trades with a ECN Broker so that i am able to trade freely as what you say will apply for Brokers who are Market makers

 
Bruce Mendes:
I prefer to do my trades with a ECN Broker so that i am able to trade freely as what you say will apply for Brokers who are Market makers

Some of the biggest market manipulators are among ECN brokers

 

Bank of Israel doing their number Free market :)

 
checkin:
Some of the biggest market manipulators are among ECN brokers

If you are talking about the Big market movers then i would say that the Banks especially the big ones put in a lot of liquidity in the markets and thus the moves

 
Bruce Mendes:
If you are talking about the Big market movers then i would say that the Banks especially the big ones put in a lot of liquidity in the markets and thus the moves

Yes. If we think that the biggest money market in the world is without control, then we should examine our heads. Wherever there is money, there is a thief too

 
bingofx:
Heard a lot of stories about market rigging I think it happens overtime we trade news ) just market is weaker in this time i.e. easier to manipulate.

It is manipulated all the time. Just that we are fools enough to think that it is not

 
bingofx:
But I think market rigging is not so bad. If you're smart enough to join them or understand their motives I think its enough to have an edge in trading. But the question how those manipulations can be identified? As breakouts? chart patterns? What do you think

As talk in one direction (by all the major banks - market makers) and pushing the trend in another direction. Check the gold for the last 2 years, Euro for the last 4-5 months and so on, and so on ...

 
morro:
As talk in one direction (by all the major banks - market makers) and pushing the trend in another direction. Check the gold for the last 2 years, Euro for the last 4-5 months and so on, and so on ...

It will always happen that Big banks will keep trading in the direction they wish the markets to move on so that they are able to gain based on Hedged trades

 
Bruce Mendes:
It will always happen that Big banks will keep trading in the direction they wish the markets to move on so that they are able to gain based on Hedged trades

They are using us for hedging their trades - placing large orders at clusters in order to trigger our stop losses. We simply do not have the information they have

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