i use no stops at all when trading with ANY FX dealer. i position size correctly based on account/trade size so that stops are not needed OR will hedge the trade in another account at times. i learned the hardway having my stops run and taken out by dealers when the price does not even print at that level. in my experience, any hard stops with an FX dealer is giving your money away. good luck, surfer
Why even deal with these companies at all?. Trading is hard enough without having to trade against someone who knows your position and your available buying power, maybe your stop and who decides what price he quotes each customer and whose integrity is questionable. I mean, think about it, they put you on manual execution if you win. Why would they do this unless they weren't covering the business and thus losing money when you win and making money when you lose. Bucketshops don't make meaningful money on a per account basis on the normal spread on small accounts, the bet is that you will lose over time. I seems that many stand ready to help you in this. The leverage is for their benefit not yours. Look for this pattern, tight spread several times and then one big gauge every now and then when there is some way of justifying it. Spreads widen in the interbank but not as often as retail requotes its customers. Work out what your average spread is once gauges are factored in. Think you can make money on that average? The only ones I would consider are IB, Hotspot, Futures or Currenex if you do size.
I agree. placing stop orders, is like showing your hand when playing a card game. My 8 year old son does this, and sometimes he still wins. But most of the time I'm winning. Wonder why. I try to tell him not to show me his cards. But he dosn't listen. How many 8 year old are trading FOREX.
You can always count on the conspiracy theorists coming out of the woodwork whenever something happens with their trading platform. I can almost see the rabble frothing at the mouth while they breathlessly type in that, âomg, the fxcm zionists are manipulating the 1.9 trillion dollar international currency during the most volatile news release of the year for their own profit. And now we have proof!â Most market makers, FXCM included, discourage you from trading during news releases because it is a good way to get wiped out. If you insist on it you should be using their professional platform. Trading news on a retail platform is silly they just are not fast enough. Use an ECN. Of course the conspiracy theory gang has no explanation for why any market maker would take a directional risk when they make money on the spread anyway. If for some reason a market maker âmovedâ the market to 10 pips below where it is actually trading wouldnât that execute all the stops, limits, and entry orders at that level? So if you were so sure that this was a consistent phenomenon you would probably be able to use that to profit consistently. That would probably be a better use of your time than blaming your broker for poor trading. Of course, none of these drooling at the mouth shills is doing that or much else besides posting idiotic conspiracy theories. If you donât trust your broker you should take your funds out immediately and find a place you do trust. A poor carpenter always blames his tools, there are dozen brokers out there, if you donât like the one youâre with then switch, but know in advance it won't change your P/L. Trader/God
To all customers of fx retailers: who's your daddy? Above is the best, most insightful description I've ever seen here.
Stiff shit. The truth is the truth. Deal with it (pun intended). In addition are you familiar with the concept of "freedom of speech". Just a thought. BTW, nice detective work mokwit. PS. while(true) { std::cout << "Bucketshop" << std::endl; }