the broker's strange condition to prohibit certain strategies - page 8

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Oleg Shenker:

Of course arbitrage is not cheating. But calling it "trading" is a bit of a misnomer. Well, you won't deny that Latency Arbitrage is a way to take money directly from a broker, not from the market, which is what traders are supposed to do. I think it won't be long before brokers who ban latency will be gone from the scene... But then the latency itself will also die (those who don't ban it are fast, you can't make a profit from them).

In Forex there is no market like in the stock exchange, any profit is essentially the money of a broker or some lp, not of traders :) At the stock exchange they also use arbitrage, but the stock exchanges themselves have been doing it for a long time already, no one will just go there, because it's the only mathematically win-win strategy :)

brokers work differently with fx brokers - they pay a % to managers who keep an eye on them for a while... :) it's essentially the same in the stock markets

 
1. Current, integral, etc. Liquidity providers accept orders in lots 0.01. Some even accept orders in 0.001 lots.
2. If I want to buy 0.05 lot right now, my order goes to the market and is executed in the market.
2. any stream of quotes is filtered. I.e. smoothed. It means that it is delayed in time if these filters are turned on at the time of news.
Why is it filtered? Let's say you have quotes from several providers at a certain moment the Ask can be lower than the Bid. Т. You open a trade in advance knowing that it is on the plus side. But only market makers can do that. That's their perk. For that, they are obliged to keep the liquidity within reasonable limits on the spread.
How lawful it is to filter quotes is a question for the regulators. Only once do I remember a few big Brokers being fined. So you have to choose a broker not by regulation but by feedback.
For example, justforex acknowledges that it is a pure gambling hall. I don't know how to do that, but they are good at it. They do not have any slippages or delays. If you do not know how to trust them, they do not know how to do it.
 
Maxim Dmitrievsky:

Forex has no market like the stock exchange, any profit is essentially the money of a broker or some lp, not of traders :) At the stock exchange, arbitrage also flourishes, but the stock exchanges themselves have been doing it for a long time already, no one will just go there, because it is the only mathematically win-win strategy :)

If you do not know what to do with them, they cannot do it for some time. :) the stock markets are basically the same.


Which arbitrage do you mean?

By market in forex I mean the whole mass of players (including LP and other brokers as well as hedge funds) excluding my broker, which (implicitly, as it were) works for me.

In the sense that forex is a dealer's market and there is no stock market in it - I agree.

Basically, if you get the broker talking, he admits he's not against arbitrage, as long as that arbitrage pushes off LPs and other players, not him personally.

By the way, the exchanges have traders doing stat arbitrage. Not everything is captured. And then there is risk arbitrage, fixed income arbitrage, time-spread arbitrage.... and there's a long list. Traders deal with all of them.

 
Dmitiry Ananiev:
1. Current, integral, etc. Liquidity providers accept orders in 0.01 lots. Some of them even accept orders in 0.001 lots.
2. If I want to buy 0.05 lot right now, then my order goes into a tumbler and is executed in a tumbler.
2. any stream of quotes is filtered. I.e. smoothed. It means that it is delayed in time if these filters are turned on at the time of news.
Why is it filtered? Let's say you have quotes from several providers at a certain moment the Ask can be lower than the Bid. Т. You open a trade in advance knowing that it is on the plus side. But only market makers can do that. That's their perk. For that, they are obliged to keep the liquidity within reasonable limits on the spread.
How lawful it is to filter quotes is a question for the regulators. Only once do I remember a few big Brokers being fined. So you have to choose a broker not by regulation but by feedback.
For example, justforex acknowledges that it is a pure gambling hall. I don't know how to do that, but they are good at it. They do not have any slippages or delays. But it's still weird.

I'm sorry, sir... I just don't understand a word of it.

What glass? There's no glass in the integral... Because "glass" is clearing, show me clearing in Integral!!!

Your bid will go into the system... and will be executed by one of the LPs. So no one is arguing. The question is at what time and at what price? Here you tell me please, what type of execution is supported in ECN on market orders?

Any forx flow is filtered!!! You are simply contradicting yourself. If there can be quotes from different players in the market at the same time, then there is basically no market stack.

And if someone can (with his crooked little hands) change these quotes, it means that these quotes are not binding, that is, they are not firm. The very fact that we call it a flow suggests that it is not a firm commitment by the counterparty to make a deal, but something fluid.

Believe me, you can find a reverse spread in the flow of quotes, I personally watch out for that specifically. Only no one will let you make a deal at those prices. Wait for a good slip... Only a market maker can trade with a negative spread... Naturally, because it is he, the market maker, who sets the prices. Another thing is that the MM is not one, there are many of them... And one MM's ask may be lower than another MM's bid. And who will forbid me to trade with negative spread with two MMs...? That's right, my "favourite" broker!!! Who will filter out the quotes. And will take the difference for himself. And they'll write in their ads: "we have the tightest spreads"...

And believe me, it's perfectly legal. No one has ever been punished for it.

How long is the execution time at the exemplary justforex? And where can I find a "review" about a broker's spread width on the news? Or on the stability of execution time after my account showed +100%? Where do they write that? Sorry, the reviews are all about emotion...

Yes, what to say!!! 80% of brokers themselves don't know, the speed of execution on their platforms. I'll never forget the genuine surprise of an employee of an IT major broker when I told him the figure. By the way, it's another confirmation of the fact that plug-ins are worthwhile, only a very narrow circle of "dedicated" people know about them.

 
Oleg Shenker:

..........

What narrow circle are you talking about and what ignorance of DCs?

Get down to earth if you have heard about it all recently.

It's all almost like commonplace truths.

 
Renat Akhtyamov:

What narrow circle are you talking about and what ignorance of DCs?

Come down to earth, if you have heard about it all recently.

It's all almost like commonplace truths.


Read carefully what I have written and maybe then you will understand.

 
Oleg Shenker:

Read carefully what I have written and maybe then you will understand.

Perseverance on the fore is welcome.

Good luck!

 
Renat Akhtyamov:

The stubbornness on the forehand is welcome.

Good luck.


Thank you! You too, sir.

 
Oleg Shenker:

Which arbitration are you referring to?

Oh, so you started chatting without even reading the first post of the thread? :) Of course latsy, the rest that you have described does not work or bring pennies, brokers do not fight with these types, because you do not earn anything!)
 
Maxim Dmitrievsky:
Oh, so you started communicating without even reading the first post of the thread? :) Of course latsy, the rest that you described does not work or brings a penny, brokers don't deal with these types of brokers because you don't earn anything!)

I read the first post. I clarified which arbitrage you meant by the exchange. Everything I mentioned works on the stock exchange. Some of them also work on the forex market. And the yield is not bad. Only brokers are struggling with it. In that very first post it says "the broker decides what counts as price arbitrage"... Brokers are equally struggling with anything that generates revenue.

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