What is a PUPPET? - page 8
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Point (from German:Punkt - point)
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What is a pip (pips)? - it is the unit of measurement and determination of price movement in the market(the last digit in the 4 digits)-there's nothing to say... It has been defined for a long time before the opening of electronic trading.
But what is a spread? that's a much more interesting question .....In my opinion, the spread is the difference in pips fromthe current price, which in turn is taken by the broker (broker), in other words, the spread is the earnings of the broker(DC-broker) between the exchange and the player(trader), supposedly for the fact that he undertakes to withdraw your money for general trading (where quotes come from) which in turn will affect the general price movement and, if he wins, pay the sum he earned or vice versa ,
But this does not happen, DC-broker does not transfer your money wherever and keeps it in his pocket and eagerly waiting for you to sell your deposit. If you manage to increase your deposit several times , you start a "dynamo" when you request the withdrawal, and understandably, who wants to give up their money?
Conclusion: the spread is a scam!
What is a pip (pips)? - it is the unit of measurement and determination of price movement in the market(the last digit in the 4 digits)-there's nothing to say... It has been defined for a long time before the opening of electronic trading.
But what is a spread? that's a much more interesting question .....In my opinion, the spread is the difference in pips fromthe current price, which in turn is taken by the broker (broker), in other words, the spread is the earnings of the intermediary(DC-broker) between the exchange and the player(trader), as if the broker agrees to withdraw your money for general trading (where quotes come from), which in turn affects the overall price movement and pay the sum earned if you win ,
But this does not happen, DC-broker does not transfer your money wherever and keeps it in his pocket and eagerly waiting for you to sell your deposit. If you manage to increase your deposit several times , you start a "dynamo" when you request the withdrawal, and understandably, who wants to give up their money?
The conclusion: the spread is a scam!
You're wrong. Read the information about the price and how it is formed. You have to find a seller to buy something and a buyer to sell it. The Ask and Bid prices are the nearest Buyer and Seller who has put in their Limit Orders. You can also, instead of buying at, say, 1.12340 (let's say, bid is 1.12335), you can set your buylimit at 1.12336. In this way, you yourself will become the nearest buyer and narrow the spread. The nearest active seller (the one who opens the market orders) will pick up your order and you will get a buy position at 1.12336, and you will win 4 points.
In general I think that in such a discussion we should omit the situation with the pitiful kitchens. The Russian market is already full of normal companies that allow you to place limit orders within the spread (forbidden - cheating) and really put deals on the market through other European or American brokers. Here you need to understand the types of accounts. There are two types, DD and NDD (aka ENC).
DD - Dealing Desk, in this case broker matches his clients orders on his "table" and thus takes spread directly to himself, taking into the market only total position. For example, 2 orders in lots 0.2 and 0.4 for buy and 3 orders in lots 0.1 0.2 0.1 for sell. All orders will be opened, but only the total 0.2 sell position will be placed.
NDD - No dealing desk. In this case, positions are directly placed in the market without any intermediaries. It is much more convenient for the client, since the execution of transactions becomes instant.
95% of companies in our market do not relate to all of this at all. If you become a trader by some miracle or you are lucky and you win, they ruin your life, but they do not give you any money. They will go as far as bribing the directors of non-commercial regulatory commissions (such as the notorious KROUFR) and sending the client over the phone with foul language to a known place.
Personally, two years ago I found a good although quite popular company and use their services without any problems. First NDD account, then it was merged into one with ENC accounts.
to: MrGold166
I thank you for the detailed explanation, but it is still not clear where do the floating spreads come from?
I am looking for a decent broker, may be you can leave your recommendations in a private message (preferences-MT5)
milo:
it is not clear where the floating spreads come from?
to: MrGold166
I thank you for the detailed explanation, but it is still not clear where do the floating spreads come from?
I am looking for a decent broker, may be you can leave your recommendations in a private message (preferences-MT5)
I have actually found a reasoned official answer to my question. If you read carefully the documents posted on the site, you can get answers to most of the issues raised in this thread, and to understand in general how to trade currencies, options, futures, i.e. the physics of the processes: the point (if or not the 3.5 sign and why it is needed), the spread and commission, how the transaction occurs and at what price,order execution priorities, clearing, data provider, dealers, regulation of forex participants in Russia, etc. Thank you all for your participation.
http://www.spbex.ru/9264 Contract Specification
http://www.spbex.ru/9268 Regulatory documents
http://www.spbex.ru/9266 Participants. Familiar "faces" there, for those who asked about the reliability of dealers.
http://www.fcsm.ru/ The Russian government regulator itself
You can also see contract specifications on the RTS exchange.