can someone please explain to me,what actually this Virtual Dealer plug-in is doing and what it`s bad for? thank you.
one more question about Deealing desk.I found this quote on the FXCM site: ''In this execution model, FXCM can see your stops and limits and we can profit from your trading losses. In our experience, this is common market practice amongst brokers that offer Dealing Desk execution.'' http://www.fxcm.co.uk/advantages/forex-execution/dealing-desk/ what does it mean they can profit from the customer`s losses?Can someone explain how it works?How do they profit form other`s losses?Just curious on the mechanism that is used. thank you
could we define ''booking',because English is not a native for me?i`m trying to understand how they do it ,techincally speaking. thank you
Hi Rorschach_test, FXCM offers our clients the choice between two types of forex execution: No Dealing Desk (NDD) and Dealing Desk. The execution you choose impacts your trading experience and spreads. We recommend NDD execution because we believe it provides our best all-around trading experience. FXCM also offers a Dealing Desk execution option for traders whose primary concern is low spreads for 12 of FXCM's most popular currency pairs. The Dealing Desk offering, however, has certain trading limitations. To determine which execution offering is best for you, please consult the table below. No Dealing Desk (NDD) In the NDD model, FXCM does not take a market position, eliminating a major trading conflict of interest. Dealing Desk brokers may actively trade against your positions. They can profit when you lose. Alternatively, they may lose when you profit. Because of this, Dealing Desk brokers are incentivized to manipulate your orders. They may for example place restrictions on stops and limits or re-quote your orders. FXCM's NDD execution model does none of this. Your orders automatically fill from the NDD price feed, which is the best available bid and best ask prices from all of our liquidity providers plus FXCM's mark-up. Additionally, your orders are anonymous to the liquidity providers. They cannot see your stops, limits, or entry orders; they only see market orders coming from FXCM. The video below has more details. <iframe width="640" height="480" src="//www.youtube.com/embed/wkeqcfvojHA" frameborder="0" allowfullscreen></iframe> Dealing Desk When operating a Dealing Desk the firm may actively be taking a position in the market, which exposes the firm to market risk. When you are long, the Dealing Desk may be short. When you are short, the Dealing Desk may be long. So your losses can equate to the Dealing Desk's profit. Alternatively, your profits can equate to the Dealing Desk's loss. Certain strategies expose Dealing Desks to more risk, such as automated strategies or strategies that trade at a high frequency. To better manage their market risk, some Dealing Desk firms actively intervene in their clients' trading by re-quoting orders, delaying execution, skewing prices, or widening spreads. Dealing Desk execution is used by many brokers in the forex industry. However, FXCM's Dealing Desk execution offering is unique because it shares important features with our No Dealing Desk (NDD) execution, such as: No re-quotes No restrictions on stops and limits Orders can be broken up and filled at multiple prices (partial fills) If you are trading on our Dealing Desk execution and your trading style exposes us to more risk than we're comfortable with, FXCM may, at our sole discretion and at any time, change your execution type to NDD. This is how FXCM can comfortably offer both options without having to resort to some of the common âdealer interventionâ practices listed above which take place at many forex brokers.
Hi Jason,thank you for your reply. Any successful,consistent traders at FXCM,with the Dealing Desk option ,that you can confirm? Thank you
Save $ 5,000 and trade currency futures. There is no reason for any trader to not trade futures anymore unless they like losing money. 1) You don't pay for the spreads. For example, you are paying the Forex Broker a pip to enter a trade and a pip to exit a trade. On Futures, you just pay a small standard commission similar to trading stocks. 2) You have around the same leverage without the risk of blowing up your account on 1 trade. Futures brokers require you to maintain a certain margin to trade a contract. With Forex Brokers, they are happy if someone is stupid enough to trade large size since they will be on the other side of the trade. 3) As noted, most Forex brokers trade against their client accounts. Future brokers don't. 4) Everyone sees the same prices in futures. As noted, if you have 2 accounts with 2 different Forex Brokers, its possible to see spikes in one account that did not happen in another account. If you rather trade Forex, than you would be better off going to a casino since at least you will be getting a free drink while you gamble.
Great advice re; futures. One thing I would say though is that the contracts might not actually redeem if there was a run on them. Certainly gold, probably silver. No conspiracy theories on oil or gas that I've heard of as yet. One thing though. FXCM's micro account has future lot sizes that are way too big for me personally, whether that's any contract. Can you recommend a broker that allows to bet smaller lots?