A pattern. - page 20
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i will dispel all your misconceptions.
brokers take quotes from liquidity providers. the broker, at any given time, chooses the best bid and ask price from several liquidity providers.
liquidity providers are 10 large global banks.
the banks trade with each other via bloomberg terminal, and . there's a glass there.
In principle, I haven't read anything new for me from this post.
but still:
what is liquidity and how does it work?
In principle, I haven't read anything new for me from this post
but all the same:
What is liquidity and how does it work?
so do big banks. they serve exporters, importers, companies, investment funds...
The banks are the primary ones in this process, they are the ones who make the trades in real Forex and then contract with the news agencies to tell them the rates of the trades, as far as I know, without volume. The agencies collect and sell the collected information, including to the dealing centres.
I read an interesting thing. Thought the banks were sending rates of completed transactions to the news agencies, but herehttp://www.alexsilver.ru/Forex/school/theory/chart-type/ reads it:
"It should be noted that in Forex, tick data does not indicate trades, but price requests, i.e. for each tick there is one issuance of a quote, which does not necessarily result in a trade."
End of quote.
If that's the case, then there's definitely no volume at the news agencies.
I will dispel all your misconceptions.
brokers take quotes from liquidity providers. the broker, at any given time, chooses the best bid and ask price from several liquidity providers.
liquidity providers are 10 large global banks.
the banks trade with each other via bloomberg terminal, and . there's a market cap there.
Mine too, please dispel. What, banks these days don't have the ability to make foreign exchange deals by talking over the phone?
Are the phrases "I take 2 mio pounds at 140 and three quarters yen" - "You bought 2 mio pounds at 140 and three quarters yen" a thing of the past?
Like a private bank in your town that buys dollars cheaper and sells them more expensive.
So do the big banks. They serve exporters, importers, companies, investment funds...
Well, that's right!
that's what I was talking about above.
you buy higher from the bank, at a better price for the bank not for you, and sell it cheaper
i wish i was wrong, but that's the way it is in forex most of the time
You do not get a quote, you do not tell the price and make a deal at this price.
of course you can count on a good price, but only if you're lucky, i.e. if the price is
or not?
so at your expense liquidity is provided, you are at a loss, not the bankWhen I was a currency trader in the doldrums of the nineties, all the spread went into my pocket and the rise in the dollar exchange rate brought in extra income. Those were the days.
Now I pay the spread to the broker and I don't always guess the direction. I cry and weep.
If you delve deeply
"The moral qualities of American businessmen of the day are illustrated by a note in a business publication: 'If things go bad, a merchant should take his job with calculation. When he realises that a collapse is approaching and has no power to prevent it, and if he has half a million dollars, he should immediately buy securities worth a million and then cash them out for, say, $800,000. Then he announces that he has collapsed and is unable to repay even two cents on the dollar. So he can buy back his debts at 10 cents on the dollar, i.e. for just 100 thousand dollars. In this way, he would launder 700 thousand dollars in a bank or on the U.S. stock exchange. To this everyone will unanimously exclaim: "What a noble man!". But if he spends the last dollar and doesn't have even a piece of bread left, everyone will say, "What a terrible crook! "
Nothing has changed. And gradually it accumulates.
Regularity is a fundamentally important thing in predicting processes for a trader
In the markets it is crucial to distinguish random deviation from regularity.
Regularities do exist and they are fairly tightly held.
It is definitely verified by history.
When algotrading by the big players has risen above 50% the predictability of the process increases.
The thread will probably turn into a flub, but the nutrient grains will be scattered. All opinions are good.
Which markets are you talking about? If it is just the currency market, then the regularities are poorly visible: all the correlations are random, there is essentially no cause and effect, all the exchange rates are the consequence of more fundamental causes. For example, many puzzled, why did the Euro grow against the USD at zero rate of ECB? And the reason was obvious: Europe ran a huge surplus against the U.S. Another pattern. If industry stagnates year after year and retail sales keep going up, it means that the banks are lending cheaply, inflating an unsecured money bubble that will burst, burying the stock market and the national currency. But one way or another, you have to analyse the whole set of statistics, not just the currency pair charts.
If you delve deeply
"The moral qualities of American businessmen of the day are illustrated by a note in a business publication: 'If things go bad, a merchant should take his job with calculation. When he realises that a collapse is approaching and has no power to prevent it, and if he has half a million dollars, he should immediately buy securities worth a million and then cash them out for, say, $800,000. Then he announces that he has collapsed and is unable to repay even two cents on the dollar. This way he can buy back his debts at 10 cents on the dollar, i.e. for just 100 thousand dollars. In this way, he would launder 700 thousand dollars in a bank or on the U.S. stock exchange. To this everyone will unanimously exclaim: "What a noble man!". But if he spends the last dollar and doesn't have even a piece of bread left, everyone will say, "What a terrible crook! "
Nothing has changed. And it's gradually piling up.
If you want to say that only American businessmen behave this way, that at the very least shows your bias. We have before our eyes many examples of our native businessmen with beautiful noble family names: Vekselberg, Deripaska, Abramovich.
Well, that's right!
that's what I was talking about above.
you buy more from the bank, at a better price for the bank not for you, and sell it cheaper
i wish i was wrong, but that's the way it is in forex most of the time
You don't have to say the price and make a deal at this price.
of course you can get the price you want but only if you are lucky, if the price is like that
or is it?
so at your expense liquidity is provided, you are at a loss, not the bankIf we find out that it is a minuscule proportion - then the theory of "working against the crowd" is smashed to smithereens.
If we find out that this is a minuscule proportion, the theory of "working against the crowd" is smashed to smithereens.
Some write that 80% of the entire global forex market are speculative traders,
Others argue that traders are small potatoes and their orders have no influence.
I have never seen any official information on the share of retail forex in the entire forex market.