Explain the mechanism. If I opened on one market maker, how can I now close on another market maker?
Your whims are strange.
I don't think a broker is able to choose anymarket maker. It's not clear what gives you"if I opened on one market maker and want to close on a different one..."."what is your profit?
Brokers say that they have a market maker that places its orders at different levels in this market maker.
And at any given time the broker chooses the best bid and the best ask for their clients.
Market makers also provide leverage to brokers, usually 100.
Imagine the situation: I opened a trade on one market maker. A buy trade at ask price, with a leverage of 100.
We essentially made a bet with this market maker on the price change of the currency pair. We stand in the trade with him. When the currency pair rises, I am in profit, when it falls, he is in profit.
Now the time has come when I want to close the trade. OK I would close on this market maker, it would be easy there.
But the broker says that at the time of closing he also picks me the best market maker, with the best price.
Explain to me how the closing process works if I open at one market maker and want to close at a completely different one.
Don't confuse market maker and liquidity provider. Your brokerage company may have many suppliers and it is up to the brokerage company to choose which ones it wants to work with. The market maker is usually the only one. And you actually should not care who is your counterparty, because brokerage companies do not place small transactions in the market, they only place aggregate positions of all clients of this brokerage company. And as you say, you make bets with your brokerage company and not with some unknown market maker.
Do not confuse market maker and liquidity provider. There may be several providers, and the brokerage company chooses them. The market maker is usually the only one. And you actually shouldn't care who is your counterparty, because the DC does not place small transactions in the market, only the aggregate position of all the clients of this brokerage house is displayed. And as you say, the "bet" you make with your brokerage company, not with some unknown market maker.
Now that's sensational!
And how does it happen?
And how does the brokerage company close this "aggregate position"? Because for that the sufficient number of clients should not only open a position for one asset at a time, but they should also close it IMMEDIATELY?
That's what brokers say...
Listen less to what the DCs say
Now that's sensational!
And how does this happen?
And how does a brokerage company close this "aggregate position"? Because for that the sufficient number of clients must not only open positions for one asset at a time, but they also closed them IMMEDIATELY?
How do I know how they close them? I read it on the site of a well-known brokerage company. And this aggregate position may be more than one, but there may be several buy and sell, for example at an average price. Of course, total positions will be different for different assets. Not all deals are overlapped in brokerage companies that have to hedge their risks.
How do I know how they close. I read it on the website of a well-known brokerage company. And this aggregate position may be not just one, but several to buy and to sell, for example, at an average price. Of course, total positions will be different for different assets. Not all deals are covered in brokerage companies that have to hedge their risks.
All this is a fairy tale for people.
It is TECHNICALLY possible to hedge risks only for one large position.
If the brokerage company accumulates many small positions and places a complex position with a liquidity provider, it has to keep its position with the provider, ACCEPTING ALL THE RISKS. That is, if there are 1000 clients and one of them closes his position, the BC cannot close the aggregate position - it compensates this client from its own funds and takes over the possible loss from his position in the aggregate rate at further price dynamics. This is not possible
These are all fairy tales to the people.
It is TECHNICALLY possible to hedge risk only for one large position.
If the brokerage company accumulates many small positions and places an aggregate position with a liquidity provider, then as the small positions close, the brokerage company is forced to keep its position with the provider, ACCEPTING ALL RISKS. That is, if there are 1000 clients and one of them closes his position, the BC cannot close the aggregate position - it compensates this client from its own funds and takes over the possible loss from his position in the aggregate rate at further price dynamics. This is not possible.
I am not going to argue on this subject. I have no information about how everything works in brokerage companies. I am talking about what I read on the site of a large brokerage company. The whole mechanism of their work with the block schemes and interactions with liquidity providers and their clients. If you have such information or you are an employee of a brokerage company, I will be glad to hear you.
I am not going to argue on this subject. I don't have any documented information on how things work inside the DC. I am talking about what I read on the website of one large brokerage company. The whole mechanism of their work, with the block schemes and interactions with liquidity providers and their clients, they don't disclose. If you have such information or if you are an employee of a brokerage company, I will be glad to hear you.
Anything less than 3-5 million dollars on forex is a kitchen. And this is neither bad nor good - this is reality.
As long as the kitchen does not distort the quotes and gives back the winnings, it's OK.
Just trade. Traders should not think about market makers, counterparties of their deals, how CAs work... Shame on you!
And when will we finally have some reason to be proud of you?
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And at any given time, the broker chooses the best bid and the best ask for their clients.
Market makers also provide leverage to brokers, usually 100.
Imagine the situation: I opened a trade on one market maker. A buy trade at ask price, with a leverage of 100.
We essentially made a bet with this market maker on the price change of the currency pair. We stand in the trade with him. When the currency pair rises, I am in profit, when it falls, he is in profit.
Now the time has come when I want to close the trade. OK I would close on this market maker, it would be easy there.
But the broker says that at the time of closing he also picks me the best market maker, with the best price.
Explain to me how the closing process works if I open at one market maker and want to close at a completely different one.