a free gift to total newbies from MajorDutch

[scose-no-doubt]

I get no respect

with good reason. Looser.

 

[D70]

The spot fx market is controlled by 8 to 10 large banks who we can call tier 1. Almost all transactions end up going through them at some point. They ARE the market makers. If they are mostly on the same side of a position it's very easy for them to operate in congruence with each other to move the market.

Peter

Wrong. Wrong and wrong!

 

[MajorDutch]

Wrong. Wrong and wrong!

why why why?

 

[DionysusToast]

is there an echo in here?

 

[DionysusToast]

echo in here

 

[dazzer_fx]

why why why?

You'll have to wait why she does some research on the matter!

 

[wackypete2]

I guess we don't get an answer?

Peter

 

[dazzer_fx]

I guess we don't get an answer?

Peter

I hate it when that happens! call someone out and then forget why

 

[wackypete2]

Waiting for an answer that may never come, so I'll attempt to clarify what she may believe I have wrongly stated.

I may have implied that banks have total control over rates. This is not true. Factors that the banks do not control that affect rates are inflows/outflows of money, sovereign interest rates, trade deficits, etc. Banks are market makers and similar to equities market makers they don't control overall long term direction of prices but can skew short term pricing.

According to informedtrades.com there are 10 top level banks that comprise 75% of all daily spot forex transactions. If they work in unison they can and do move the rates.

At the center or first level of the market is something known as the Interbank market. While technically any bank is part of the Interbank market, when an FX Trader speaks of the interbank market he or she is really talking about the 10 or so largest banks that make markets in FX. These institutions make up over 75% of the over $3 Trillion dollars in FX Traded on any given day.

Peter

 

[MajorDutch]

Waiting for an answer that may never come, so I'll attempt to clarify what she may believe I have wrongly stated.

I may have implied that banks have total control over rates. This is not true. Factors that the banks do not control that affect rates are inflows/outflows of money, sovereign interest rates, trade deficits, etc. Banks are market makers and similar to equities market makers they don't control overall long term direction of prices but can skew short term pricing.

According to informedtrades.com there are 10 top level banks that comprise 75% of all daily spot forex transactions. If they work in unison they can and do move the rates.



Peter

that's the way I understood things to work Pete happy for anyone to teach us otherwise.:whistling

 

[wackypete2]

that's the way I understood things to work Pete happy for anyone to teach us otherwise.:whistling

My apologies for sidetracking your thread

Peter

 

[scose-no-doubt]

Time to short CHF?

 

[wackypete2]

Time to short CHF?

How about buy eurchf around 1.2060. Limited downside risk since SNB has confirmed it will be propping this pair up to keep it at 1.2000 or above.

Peter

 

[D70]

How about buy eurchf around 1.2060. Limited downside risk since SNB has confirmed it will be propping this pair up to keep it at 1.2000 or above.

Peter

Red rag to a bull ....

 

[wackypete2]

Red rag to a bull ....

love the one-liners.
No follow up.
Useless contributions.

Peter

 

[scose-no-doubt]

How about buy eurchf around 1.2060. Limited downside risk since SNB has confirmed it will be propping this pair up to keep it at 1.2000 or above.

Peter

swat I meant


Bulls are colour blind.

 

[scose-no-doubt]

I can't see anyone standing in the way of a CB when everyone and their dogs are pumping trillions into various "easing" programs. I know who I'm backing in the competitive devaluations championships and you can be certain it's not the f*cking ring girl.

 

[camembert]

How about buy eurchf around 1.2060. Limited downside risk since SNB has confirmed it will be propping this pair up to keep it at 1.2000 or above.

Peter

until it gets to 1.1990 and theres been no intervention and everyone trying to front run the SNB gets panicky and they all rush for the door at the same time like fat people in a lift and then once they are all out SNB do a drive by.

 

[wackypete2]

until it gets to 1.1990 and theres been no intervention and everyone trying to front run the SNB gets panicky and they all rush for the door at the same time like fat people in a lift and then once they are all out SNB do a drive by.

Nothing wrong with front running the SNB. Probably get a few decent trades before it drops below 1200. I agree though at 1990 or so there should be massive stops sending it quickly lower.

Peter

 

[D70]

love the one-liners.
No follow up.
Useless contributions.

Peter

Hi Peter,

Sorry. Didnt mean to pick on your posts but the first one where you were talking about banks and their control of the fx market. I dont believe this is the case anymore. They dont have the fire power and although I dont doubt your stat of how much business goes thru their hands, it isnt their own prop trades. It is client executions - hedge funds and central banks. These 2 groups have the power (if any) to hit a cross 20 ticks or so - trying to give it some momentum. But even then, you can be banging on a stone wall. I've seen $100's of millions banging on crosses in quick succession and the market can take it on the chin if your timing isnt right.

Regarding backing a central bank position as you suggested - this has historically been a very bad trade. 1 central bank vs the world ? But I hope you are right. Why not hey?

Hope that's a better contribution...... (I didnt think t2w cared about contributions anymore, just a site of gunslingers).

All the best,