Interesting! Turns out SL means nothing! - page 2
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Are you familiar with such concepts as forwards, futures, swap-contract?
Also as you know, "not the first day of the swap..."(c, soldier)
Your swap-contract is leverage!
Spell it out: a swap agreement (or swap contract) is an overnight loan agreement. There is a thing in the states, they have a number of bank counterparties, and the bank can get caught if the planned inspection of its balances (nala ...) will not go up to the min. established by law. This is when the paperwork between banks appeared as a swap contract, one bank giving the other a one day cash loan... (a 1-day loan with interest accrued daily, in essence swaps).
And a normal broker will never have lock-ins (the principle you described...). You ( you're the first who started with you) have a ruble, you sell it for a banana, and you sell the same banana for a ruble (not exactly a ruble... the spread...). You can easily get into a lot with our brokerage companies... To open an order and one more when the position and price are averaged with recalculation of floating profit/loss, and we have 0.1l at one price and buy another 0.1l... And we see 2 orders, while there should be one position! So no... I can have at least 100 buy orders in my terminal, and they won't all be good (
P.s. I have never seen a normal broker (Real broker) who gives guarantees...
P.p.s. I am interested ! Maybe also become a DT and give guarantees for 50 lakhs a year that a man will earn 10 lakhs at least... and filter the market against him...
P.p.p.s. It's no secret where they take quotes, from the same inter bank, with a delivery of -10-20 sec, which goes to filtering....
Are you familiar with forwards, futures, swap-contract?
Well, for some serious money, a serious broker can provide a guaranteed stop-loss for his client with the help of such instruments. This does not apply to mini-micro lot firms.
Thank you ! I smiled )
I didn't know there were still really people who believe in this nonsense.
Also as you know, "not the first day of swaps..."(c, soldier)
Your swap-contract is leverage !
No offence, but everything said is bullshit. A swap-contract is a contract to exchange something for something. For example, a swap for the next Friday, or a fixed rate in exchange for a floating rate for 10 years. You should read something or something...
Thank you ! Smiled )
I did not know that there are still really people who believe in this nonsense.
Forward contracts are bullshit only when you're dealing with a couch potato DC in Mukhos. But when you work with the major investment banks (located in the non-BSSR), which show every deal you make on the stock exchange, it's all very serious.
It's time to grow out of the Metatrader sandbox and take a broader view of the world. Especially in the financial world.
No offence, but this is all bullshit. A swap-contract is a contract to exchange something for something. For example, a swap for next Friday, or a fixed interest in exchange for a floating interest for 10 years. You should read something or something...
Exactly everything you said above is bullshit.
BARS is right about the definition of swap.
And you just haven't delved deeper into the concept of credit, so it's not his fault.
Here it is: ( Now you read it)
The Republic of Belarus" (National Register of Legal Acts of the Republic of
Belarus, 2005, No. 176, 8/13348) with a view to refinancing banks
the banks of the Republic of Belarus by carrying out swap transactions using
on the basis of swap transactions involving foreign exchange.
These Instructions determine the procedures for carrying out
the National Bank of the Republic of Belarus (hereinafter-the "National Bank") carrying out swap transactions with
banks of the Republic of Belarus (hereinafter-the "banks") as well as the actions
the National Bank to carry out such transactions.
2. For the purpose of this Instruction a swap transaction
means purchase by the National Bank from the bank of foreign currency for
Belarusian roubles (direct transaction) with an obligation to sell
foreign currency for Belarusian rubles after a period of time determined by the parties to the transaction (reverse transaction)
on the date specified by the parties to the transaction (reverse transaction). The amount of foreign currency
does not change.
3. Foreign currencies used in swap transactions are
US dollar, euro and Russian rouble (hereinafter referred to as the Russian rouble) are used as foreign currencies for swap transactions.
Russian rouble) are used as foreign currencies for swap transactions.
4. The National Bank carries out SWAP transactions as part of
permanently available instruments to support bank liquidity
permanently available instruments of bank liquidity support (hereinafter referred to as "standing swap transactions") as well as within the framework of
bank liquidity support operations (hereinafter referred to as "bilateral SWAPs").
bilateral swap transactions).
As standing swap transactions, the National Bank
executes swap transactions with a maturity of a reverse transaction on the
the next business day after the execution of the direct transaction. The Monetary Policy Committee of the National Bank
The National Bank's Monetary Policy Committee for executing standing
The Monetary Policy Committee of the National Bank establishes individual limits
of banks' debt on swap transactions (hereinafter referred to as "the limits").
So a swap is a type of credit.
Forward contracts are only bullshit when you're dealing with a kitchen DC in a backwater town. But when you work with major investment banks (located in the former Soviet Union), which take any transaction to the stock exchange, it's all very serious.
It's time to grow out of the Metatrader sandbox and take a broader view of the world. Especially the financial one.
And you get out of the sandbox, mum's the word, stop playing around. If you can't tell the difference between a contract (market) and insurance...
It's just that some people have insurance. So you're not the only smart one here, and be cultured.
Almost everywhere, with few (well, very few!) exceptions, all brokerage companies explicitly specify (not in the rules, of course) when opening/closing trades:
Limit orders (take) are executed at the set price.
Stop-loss orders are executed with a slippage.
//--------------------------------------------------------------------
Hence - draw the conclusion, with all that follows.... ( - with gaps, you are always at a potential loss if the order hits the gap)
Curiously, that climbing shamelessly into our pockets in that way, the employees of DC explain such a state of affairs - allegedly, the existing world practice of exchange trading! (This also does not correspond to reality)
From the rules of processing and executing clients' orders:
"When the order level is in the price gap at market opening, orders may be executed on the appropriate Bid or Ask side of the first quote after the gap. Buy Stop, Sell Stop and Stop Loss orders may be executed below the level declared by the Client; Buy Limit, Sell Limit, Take Profit orders may be executed above the level declared by the Client".
This is the normal market mechanism for executing stops at Gaps.
The law of the Republic of Belarus" (National Register of Legal Acts of
Belarus, 2005, No 176, 8/13348) for the purpose of refinancing banks
Republic of Belarus by means of swap transactions using
The Bank of the Republic of Belarus is a great authority on the world's financial markets.
About swaps I recommend to start here - https://en.wikipedia.org/wiki/Swaps
Then continue here.
And then we can talk about insurances and how they are constructed. I recommend at least a couple of years of actuarial science to prepare the conversation. As a primer, there is no such thing as "just insurance".
Some brokers offer a guaranteed stop loss, but that's a separate story and that's for separate (quite serious) money.
I would add "very serious brokers..."
P.s. I have never seen a normal broker (a real broker) who gives guarantees...
You haven't seen one, it doesn't mean it isn't there.
A lot of people haven't seen it.
From the Client Order Processing and Execution Regulations:
"If the order level falls into a price gap at market opening, orders may be executed on the relevant Bid or Ask side of the first quote after the gap. Buy Stop, Sell Stop and Stop Loss orders may be executed below the level declared by the Client; Buy Limit, Sell Limit, Take Profit orders may be executed above the level declared by the Client".
This is the normal market mechanism for executing stops at Gaps.
From my actual practice this year:
- there was one execution on the news with a slippage to the worse by about 25p.
- One Take Profit - WARNING - with slippage for the better - just at the so-called "weekend gap".