Leverage, I dont understand the principle of it...

oldtime · Jul 28, 2012

Quote from Tango 6 Alpha:

Well, Oltimer. I guess I've been down that road a time or two myself. I've grown weary of the constant fools that you have to put up with such as the really clueless type that Atticus represents. I've been dealing with such fools for over 10 years in this business. But, at some point, I recognize how difficult it is for newbies these days to cut through the fog of what has now become the commercial support of the online trading community.

These forums (mot of them) are supported by those who have no real interest in helping the nube get to where they need to be. It is far more difficult today online, than it was when I was learning, to weed-out the insignificant from the significant. Most because of the trollish nature of some and the commercial take-over of most boards these days.

I've created a forum for educational purposes and to conduct some of the public "trials" of my latest work, but I'm having second thoughts about spending that much time online answering the inevitable questions that will emerge, once I begin running my Bots in public view. So, at this point, I don't know that I will make my research forum public, short of just a few invites to those that I know are serious about improving their trading experience.

The BS that you have to plow through at places such as ET, is staggering at times and I'd no doubt have to end up playing the role of "enforcer" by bouncing people off the forum who don't add value.

Still, I do somehow care that nubes get their wings and start to fly. Trading does not have to be incredibly difficult to learn, but the fundamentals of technical trading are vitally important for nubes who plan to enter that genre of the business.

If they fail to understand what makes good technical trading, there is no doubt that they will have their motivation and direction, completely misguided and taken off track, by dishonest brokers, clueless trolls and a host of other types trying to sell them everything under the sun that will never help to make them successful long-term proprietary Traders.

So, somehow, I continue to help those who genuinely want and need it - while putting up with the other nonsensical crap online. But, everything has its limits and I won't be here to help the nube forever.
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well, a suggestion and a comment,

first of all, I didn't read your last post (too long)

and secondly, I am about getting tired of your shit

oldtime · Jul 28, 2012

Quote from Tango 6 Alpha:

Its simple - I answered the question before. The get lines of credit to build their business. It is no different in that regard, than in most business models.

Look. You and I, could go out right now and start-up our very own Brokerage. We'd have to get through the regulatory steps, which would include things like client reserve limits, business and operational account limits, exposure coverage limits and a host of other regulatory requirements. OK, once we got through the regulatory specs, at some point we would have to approach at least one LP (for goodness sakes). the LPs have regulatory requirements as well, for the types of "investments" they are allowed to make, if they in fact Commercial entities with a Charter of some kind to uphold and maintain with the public. There are other entities structures that an LP can take, but this is just for the purposes of illustration, so I won't get into those details.

Now, we have our little Bucket Shop set-up, complete with our Bucket Shop Back and Front Office software, not the least of which is the technical piping we use to obtain pricing from our LPs, mark them up through increasing the spreads then ship them out to our customer's desktops. Again, there is a bit more to it than this, but I'm cutting corners here in trying to explain this, so I'm a lot of things out.

Well, not only would we need to have at least one LP to provide the liquidity, but that LP will want to know that we also have some "insurance" (not really, but a form of the same) against losses we might incur as we TAKE POSITIONS AGAINST OUR CUSTOMERS which of course we LIE about to the rest of the world through ambiguous double-speak such as:

- No Dealing Deask
- Tight Spreads
- No Partial Quotes
- No Re-Quotes
- etc.
- etc.
- etc.

Well, that 'insurance policy' of sorts will typically (not always) come from a legit Bank. It is basically a LOC aggrement, that is supposed to handle the compensating balances requirement that the MM has with the LP. Essentially, this is my understanding of the business model.

Boom - just like that (not really, but you get my point), we are now an FXCM (Oooops!), I mean, Interbank (Oooops!), I mean Retail FX Bucket Shop.

That's the very (very) short version.
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yeah, that's great, I have been approached by bucket shops that want me to invest, so I know the routine.

But how does www.interactivebrokers.com do it? Or how does www.cme.com do it?

atticus · Jul 28, 2012

Quote from Tango 6 Alpha:

Do you have anything (anything at all) further to say on this matter?
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How can you reconcile your statement that I don't know who you are, yet I know that you attended Embry Riddle?

And yes, you're still one crazy mofo. I understand that your insecurity re: your living situation turned you into Walter Mitty, but you're blown, man.

Why continue a fight to save face when there is nothing left to save? You'll disappear like last time and come back with a new handle and attempt to recruit "testers" for your dubious MT4 scripts.

What's really absurd is the contention that you're some pro with an FX PB connection yet you produce hack youtube videos showing word docs with bullshit pseudocode with lines concerning FXCM, yet you profess to despise the company? Bloomberg FXGO too low brow?

Prime brokerage + interbank + MT4 + FXCM does not compute.

I have nothing personal against people I've never met. We had a tif and someone you blew-up in FX contacted me in PM and gave me the story. Sucks for both of you, but such is life.

WTF does FXCM (beyond your insistence on staying with FXCM) have to do with this thread? I've never said anything about FXCM that can be remotely construed as positive. I do not now, nor have I ever worked for FXCM, and I have never been a client of FXCM.

Bye Hosea, and enjoy the Huayra.

oldtime · Jul 28, 2012

Quote from capitalistsmith:

I dont get the principle of why it is brokers are allowing us speculators extra cash to trade with to profit from potentially larger gains.

Now, dont get me wrong, I understand the principle of leverage and the fact that the broker is wanting you to potentially expose yourself to a larger risked position (especially if they`re a market maker) to capitalize not only from the spread but from your loss if they`re trading against you.... (in which case its just artificial leverage right? - I mean, they`re the counter party to your trade, so your money doesnt go any further than the broker themselves)

However, If i traded through, lets say, IBFX who offer 1:50 leverage, why are they willingly giving me there physical cash to leverage up on a position when they only make profits out of the spread (commission) and the trade gets sent over to their liquidity providers?

I know im definitely missing something here, but I cant seem to figure it out why they`d take this risk in allowing me to trade with more money (50x) than what I have on deposit!?

Would be great if someone can explain to me in really basic laymans terms (analogies are welcome )
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oldtime · Jul 28, 2012

Quote from Tango 6 Alpha:

I just explained it to you, but you can fly-by it if you so desire.
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the only thing you explained to me is that you are a nut case suffering from delusions of grandeur.

I am just a small podunk retail punter and never present myself as otherwise.

But I've been at this a long time, and one of the reasons I am still solvent is because I can figure out the difference between shit and shinola.

I don't know who you think you are fooling, but yes, there are some very gullible members here on ET, and occasionally they think I know something they don't and I quickly point out to them I am not any smarter, just been around a little longer.

You are a sick puppy. But I will say this, a sick puppy to the extreme, and that is always entertaining.

The problem is, I have no agenda and nothing to do, so you can post your shit till the cows come home and I will always ridicule it.

If you want to make any progress in your scam, I would suggest you change your handle and try a different approach.

Because as long as you post under 6TA you will always be labeled a scumbag fool.

otherwise, don't come off pretending you are moving big money and get totally pissed off when someone doesn't believe you.

oldtime · Jul 28, 2012

and that is why kids, they tell you not to lie, because it just gets harder and harder to remember what lies you have told, and you have to talk more and more, and your posts get really long. (Jack Hershey?)

If you're going to lie, keep it short and sweet

(that's what I do)

After I tell you all the true stories, if you are still listening and will buy me a drink, I will tell you the lies

and actually, the lies are much more entertaining

the truth keeps happening

but the lies are old and have been rehearsed many times

newwurldmn · Jul 28, 2012

Quote from Tango 6 Alpha:

The Texan II, is not a "jet trainer." The T-37 and T-38 are "jet trainers" as well as the T-45. The L-39 is both a "jet trainer" and a front-line interdiction platform used by countries with smaller defense budgets and narrow national boarders - but it is not a "jet trainer" used by either the USAF, or the USN to train pilots.

So, instead of being knowledgeable about the things you call yourself using to slight another, you instead come off like an uninformed jealous hack.
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You mentioned to look up t6a. This is what comes up when you type t6a military in google. Not some covert secret special air force squad you are implying.

http://en.m.wikipedia.org/wiki/Beechcraft_T-6_Texan_II#section_6

Thr call it a trainer ad site a source. What do you do? Read some jane's books to sound like a hotshot. Pretty douchey to me.

oldtime · Jul 28, 2012

Quote from Tango 6 Alpha:

You read like a jealous tug boat, clamoring for the chance to be a Cruise Liner, but always under the knowledge that your place runs no further than the ports and the shipyards.

With a lousy, stinking attitude like that, getting out on the high seas of trading, is just not in your future.

BTW - It is T6A, not 6TA.

Tug Boat.
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sorry about that T6A, just an innocent dyslexic slip (or a typo) No disrespect intended

oldtime · Jul 28, 2012

Quote from Tango 6 Alpha:

I'm so sure you truly mean that.
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oh, are you doing that again? Is that what you call sarcasm?

Again, I apologize for mispelling your handle. No harm was intended.

atticus · Jul 28, 2012

Quote from Tango 6 Alpha:

Embry Riddle? Please, I've discussed my time at ERAU on several other forums related to Aviation and Politics. Yet, you think you're coming up with something that's not already out there.

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Not that I doubt your veracity... but how about providing ONE LINK to back up your statement. Just one.