Exposing themselves to unlimited risk ? What risk ? The risk that they have to pay out the big profits a certain trader made out of their own pockets ? They DON'T HAVE to pay the profits on those trades, some even make the trade disappear like it never happened or spike the price to hedge their book. Most forex brokers , no , MARKET MAKERS don't have access to any outside liquidity, their politics is to take profits from the losing traders and sabotage (stop running,price shading,platform freezing, requoting when you want to get out with good profit,etc..) the winning traders.
WELL SAID ! Try scalping with a market maker to see how long before they put you on manual aka screwing mode LOL The money they take from the 90% losing traders is the easy money, to take the money from the 10 % winning ones, they have to "work" a little.. LMAO Here a link to some popular screwing software : http://www.elitetrader.com/vb/showthread.php?s=&threadid=118174&perpage=6&highlight=mt4 plug in&pagenumber=1 The only REAL INTER-BANK (inter = between) trading is on EBS and Reuters 3000 http://www.ebs.com/products/spot.asp http://about.reuters.com/productinfo/dealing3000spot/ An honest market maker just makes money off the spread and hedges net exposure Most want more than just the spread and since forex is UNREGULATED they can do whatever they want to steal your money..
You quote me from 2 different posts in a different context.. Even if a market maker DOESN'T hedge themselves, they have NO RISK That so called "risk" is that they have to pay out profits to a trader out of their own pockets(when trading on an exchange ,profits come out of the pockets of another trader somewhere in the world), like I said, they even let profitable trades disappear or say that your profits came from "illegal"(scalping) trading and that those trades are not valid (I am speaking out of personal experience) MOST forex market makers want more than just the spread and that explains all the games they play to steal your deposit
Hi Fluttrader, Do not spin your wheels too much trying to convince those who obviously "know" better. What I wrote before came from my direct experience trading with real $. I also managed to talk to few developers who developed some of these retail forex systems. I'll say it again, if one wants to trade forex there is excuse to trade at forex broker rather then CME futures. The usual explanation is well we need mini lots or some exotic pairs. If one can not make money trading 6 majors with CME futures, forex MM will not help them. redduke
I also talk out of personal experience and that of others Yup, most people want to believe whatever that looks too good to be true mini-lot size is NOT traded on the REAL inter-bank market Regarding the much hyped "3 trillion $ a day forex market" : most of that size is not even traded in spot LOL yesterday's volume in the Eurofx at the CME was about 25 billion notional size, REAL size Forex is a liquid market but liquidity is fragmented since there is no central exchange