OI is not increase by two if the counter-parties trade a one lot to open a position. If one is to open and one to close... no change to OI. If both close? OI is reduced by one. The buyer and seller remain anon. Nobody disputed that the contractual obligations are guaranteed by the exchange and not the traders (FCMs). You're stating that two "legal contracts" exist. Well no shit, Sherlock. In no way does add color to volume or open interest. It's akin to stating the sky is blue. You're a fucking idiot.
No, they don't! Open the DOM and lift the offer. The buy at the top of the queue will fill your bid. The exchange doesn't "make sure" that they "match" two traders... it's wholly dependent on YOUR size and price and who is FIFO on the offer. MARKET EXPOSURE?! dafuq, Bro?
Your BS won't work. I would turn you into my hand puppet. https://www.elitetrader.com/et/threads/hit-my-pr.340285/
People who do not read books are naturally drawn to "Wikipedia". Dest read books. But people who read books do it also. Handy reference, if the articles are clean. Sorry for the delay, but the equity market is going funky and I am trying to trade it at this moment.
Conclusion. All I said is proven as correct: A Futures exchange acts as a counterparty to each trader. They match orders internally, so the orders become filled trades. When that happens, a contract is established between the exchange and each of the involved trader – that is actually: two contracts, because two traders are involved, and to each of them the exchange acts as the counterparty, that is: counterparty in a contract. Apart from those two contracts there is no other „contract“ involved – especially not a contract between the two traders themselves. Any talk of „contracts“ being traded, or of trader A and trader B being counterparties to each other, or of a contract between A and B is only inexact, abbreviated talk for this actual situation. There is no other contract apart from what I described here. This is the underlying reality and legal structure of an exchange or rather of a futures trade at an exchange. And this can be read by anyone in standard books on the topic (I pointed to John C. Hull), or wikipedia, or on the exchange’s website, or on many other sites when googling something like "who is the counterparty in a futures contract?“. Open interest of exchanges counts only one side of the trades they match, which is why OI tables can have odd numbers. Again, this can be read by anyone in standard technical books and on the exchange’s websites. Regulated and trustworthy CFD-brokers (I am not talking about the bucket shops), or their big liquidity providers, operate in a basically analogue way: they match corresponding orders internally; they can also fill a client’s order and hedge it externally, which is structurally the same. So with CFDs as well, the house acts as the counterparty to two traders, which means there are two contracts; there is no direct relation between two traders, only the internal matching of two clients. Again: All this can be read on the regulated CFD-broker’s websites, in their terms and conditions documents. Apart from that, a word on the culture in this forum. I made the above statements and gave explanations, arguments and references. But from the beginning have been ridiculed, insulted, told via PM to fuck off and so on. Those insults and allegations are, by the way, not only violations of this forum’s rules, but of basic human decency. A forum where this kind of behavior reigns is a shit hole.
By your explanation, who's the counter party to deltaone's contracts? He basically fill his chart with 250 contract orders so I'm guessing it's in the thousands of contracts. So are IC other customers taking on that other side? Given that CFD is not centralized, how does the broker match his trades up? (if it's real)
Read some IC customer agreement and the language is basically between you and us (IC) 17 If a Transaction is Closed Out, or settlement for difference being made: (a) we will credit to your Account any amount payable by us to you; or (b) you must pay to us any amount payable by you to us in cleared funds in any such currency that we may require immediately upon the payment request being made.