The legal side of trading. Does anyone have a FAQ? - page 4

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Well, you can see it all at once.

The dealer, having seen such a volume of a position in hundreds of lots, immediately (most likely) smirked and forwarded the order to interbank.

If the stop loss had triggered, the losses would have been imposed on the client who would have drawn this order in the terminal retroactively, - as the client said, - and this is exactly what had happened before.

And because TakeProfit worked, the dealer pocketed tens of thousands of dollars.

And they wrote to the client - "Sorry, bro, - we did not have time to process and place your order...".

It's so obvious.

//-----------------------------------------------

Quote from the client, the author of the complaint discussed on the CRDFM:

"...my trades in this large account have been closely monitored for half a year now. I noticed this exactly six months ago. When pending orders started to be set for 2 minutes, when immediate trades almost stopped being executed at all (only up to 0.99 lot, unless the price jumps). A deal of one lot is usually executed from one minute to three. If the price moves one point or half a point against me, I get a new price. As you have understood, the price will move one half point in a minute or three. In this account I have the possibility to trade only with pending orders.

"

 
timbo >>:

1)Чушь это то, что пишешь ты. На ФР точно также можно торговать с плечом (сюрпрайз!).

2)Вся разница между форексом и ФР только в том, что на ФР клиенты торгуют напрямую друг с другом, а на форексе через маркетмэйкера. Но если клиент единственный на земле, то маркетмэйкер с ним торговать не станет, т.к. ему всегда нужен контрагент. Маркетмэйкер - это прокси-агент, то что ты не видишь другого клиента это не значит, что его нет. Это ты играешь, рискуешь. Маркетмэйкер тупо работает, т.е. он не примет твою ставку на повышение, если у него нет другого такого же как ты, кто сделал ставку на понижение, он никогда не будет рисковать сам.

1) it's not a surprise to me.

2) Further on the text.

He seems to be a competent person, knowledgeable in theory, but he is talking nonsense.
You go to the bank, which has USD and EUR. The EURUSD exchange rate is 1.2. You buy 83.33EUR for 100USD. Do you need a counterparty? Of course not.
One month has passed. EURUSD=1.3. You sell your 83.33EUR at 108.33USD. The profit in your pocket is 8.33USD.
Do you need a counter position? Of course not.
Or so. A month has passed. The exchange rate has fallen to EURUSD=1.1. You sell your 83.33EUR for 91.66USD. Your loss is 8.33USD.
Do you need a counter position? Of course not.

You thought that there was no sense to make change, so you took a 10 000USD perpetual loan, leaving 100 USD as a collateral. Of course, nobody will give you the 10,000USD, and you will keep it in the bank. This is called leveraged trading.
So, the EURUSD exchange rate is 1.2. You buy 83333.33EUR for 100,000USD.
One month has passed. EURUSD=1.3. You sell your 8333.33EUR for 10833.33USD. You return 10,000USD to the bank, getting back your 100USD. The profit in your pocket is 833.33USD. And that's 933.33USD in your pocket.
Pretty cool, huh? But this is if you were lucky and guessed the direction of the exchange rate.
And if you didn't. Then, at the rate of 1.21, your account will be zeroed out, because the bank will stay with us and take your 100 quid.

Like this. And all this, of course, without taking into account the commission. The profit will be less, but the loss is greater.

Of course, I have simplified the description, but in general this is how the machine called FOREX works. For the execution of very large trade orders of clients, the broker takes the funds from the bank (again, the money remains in the bank). In most cases, however, the broker provides clients' orders with his own internal balance. If it is honest. And there is nothing wrong with that, because to secure all leveraged client orders, the broker is still credited by the bank, if he is not a bank himself.

And if it is a kitchen, then clients' bids are not secured in any way and the client's profit is the broker's loss. That is the difference between a "kitchen" and a "non-cookery".


Again, counter positions are not necessary for forex transactions. This is not FB or TB or exchange or OTC options for which counter positions are required.


I apologise to the public for indulging in such simple truths, but I have to do it for the difficult ones.

And on the subject: contracts must be enforced. You should carefully read the contract with the broker and refuse to cooperate with him if there is the slightest doubt.

 
joo >>:

Вот вроде грамотный человек, в теорвере разбирается, а несет ахинею.

Ты идешь в банк, в котором есть в наличии и USD и EUR. Курс EURUSD=1.2. Покупаешь за свои 100USD 83.33EUR. Контрагент тебе нужен? Нет конечно.

I'm also good at finance, that's how life has twisted me. You ask me if you're interested in anything...

Where did the bank get the euros to sell? Printed them? Your counterparty brought it to him two minutes before you did. And if he didn't, there'd be a "no euras" sign. Once again, just because you don't see the counterparty doesn't mean it's not there.

One more thing: you are confusing a broker with a brokerage company, they are different things.

 
timbo >>:

Ну и по мелочи: ты путаешь брокера и ДЦ, это разные вещи.

Exactly. :)

Real and virtual.

 
gip >>:
Как это сняты вопросы? Твои рассказы за рынок к проблеме с тем отложенником не относятся и вопросы не снимают. Это вопросы регламента взаимодействия альпарят с клиентом, а не рынка. Строго говоря твои размышления только туману напустили.

What's all the fog about, it's all "obvious" to the lumpen proletariat. The "crook-and-bloody-dealer" - take it away and divide it. Sharikov's cause lives and triumphs.

A simple question for you: do you expect a 20 million news bid to be fulfilled in ...(how many?)... seconds? An additional condition: you don't "trade" in a shady business, but in a decent brokerage company that honestly hedges its clients.

 
timbo >>:

Да какого там туману, вот люмпен-пролетариату всё "очевидно". "Жуликовато-вороватый дилер" - отобрать и поделить. Дело Шарикова живёт и торжествует.

Тебе простой вопрос: ты ожидаешь что заявка на 20 лимонов на новостях будет исполнена за ...(сколько?)... секунд? Дополнительное условие: ты "торгуешь" не в шарашкиной конторе, а в приличном ДЦ, который честно хэджирует своих клиентов.

one thing that is disconcerting is the striking accuracy of the execution in some cases. :)
 
FreeLance >>:
одно смущает - поразительная точность исполнения в некоторых случаях. :)
What is it? I read the link, but didn't see any cause for embarrassment there.
 

Are you not surprised that the TakeProfit never slips in favour of the participant in the virtual game?

Are the responses and remarks of the "judge" impartial? :о)))

;)

 

A takeprofit is a limit order.

At stockbrokers, it slips quite often to the trader's advantage.

 
FreeLance >>:

Вас не удивляет, что Тейкпрофит никогда не проскальзывает в пользу участника виртуальной игры?

It has already been answered there: limit orders do not slip, stop orders can slip as far as they want. Takeprofit is a limit order. It works equally for opening and closing a trade. If you think about the essence of real processes, you will understand that it cannot be any other way, as it directly follows from the definition of the limit and stop orders. Try to think aloud, at what price a stop-loss order is placed, where the market goes, at what price the market is ready to buy or sell. Try it and I will tell you if anything happens.
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