Price maker / Price taker

Discussion in 'Forex Brokers' started by dev, Aug 2, 2006.

  1. dev


    A couple of times now I've read threads where people mention price maker or price taker.

    I apologize in advance if I'm being really dumb, but if I become a price maker does this mean I can actually buy at the bid and sell at the ask?

    If this is true:
    is it something you can do only via ECN?
    Does anyone else from here trade this way? Your experience would be appreciated.

  2. dev


    No-one knows anything about this?

    If only to tell me my thinking is wrong?

  3. Cybren


    Dev, using an ECN allows you to put your bid in front of others and allows others to hit your bid. E.g. in this case you are a price maker whilst your counterparty is the pricetaker. Same is true at the offer side ofcourse and you could also join the bids and offers.

    If you are not using an ecn your broker does not allow trades and order to be matched by any one else but theirs so you always have to take the brokers price and in this case you always have to take whatever the broker offers you (or don't make a trade)


    market makers
    Control the software, the charts, and flag all profitable accounts
    and trade aganist your account.

    So in less you enjoy margin calls, and giving your money away.
    Dont waste your time with CMS FX SCAM< or any other Retail FOREX broker.


    Central Fla.

    If anyone is aware of pending law suits I would be interested.
  5. dev


    Thanks Cybren, much appreciated. I think I get it, but bear with me - am I correct in thinking the following:

    Let's say the market is 22-23 and I join the bid at 22 for 1 lot - if someone hits that bid, that means they have sold 1 lot at 22, and I have bought 1 lot at 22?

    Again, apologies if I appear dumb.