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. tia. dev
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. Sincerely, JC Central Fla. JCBLESS@aol.com If anyone is aware of pending law suits I would be interested.
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. tia