N
neil324
So what do they do when they see your positions?
So what do they do when they see your positions?
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
Droooooooooooool in anticipation of an easy meal - buuurp !!
N
neil324
How do they know it's 'easy'?
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
A sudden spike to just catch the newbies' stop loss position.
Last edited:
N
neil324
Do they move the market or only their price feed.
I love the customer service of City Index and their platform is great I love it. Unfortunately even though I have been in this game 2 weeks the massive apparent conflict of interest is enough to put me off having a MM as a broker.
So I will shortly be switching to a different provider. The rationale behind offering GSL's is exactly as per my previous post in my opinion as I had this confirmed today. It's a money spinner as they know everyone's positions. I was told today that really a MM broker should offer GSLs on every trade for free because you're trading against them as opposed to an active market. Makes sense to me but I fully accept that I'm not an expert....yet!
I was also told today as a guesstimate about 95% of retail traders fail. So as a newbie I need to give myself a fighting chance by at least not going with a broker who knows my every move. Obviously this will become more of an issue as my trades increase in size as currently I only have £10 in my account 😱
I feel pretty lucky that I've learned this relatively early on in my journey.🙂
Thanks for everyone's advice I'm finding this forum incredibly helpful. :clap:
N
neil324
The MM trades agaisnt you to balance his risk not to pick off stops. If they was picking off stops then they either have to take risks by 'trying' to move the market or maniuplate their feed, which you would have spikes all over the chart, the chart would then have no resemblance to the underlying market.
Don't like the sound of this. I am just starting my SB journey and things seem like they are going to be hard enough anyway. I wonder what sort of other stuff these companies do to get the upper hand. Feeling slightly worried about getting into this.
[/QUOTE] The rationale behind offering GSL's is exactly as per my previous post in my opinion as I had this confirmed today. It's a money spinner as they know everyone's positions. I was told today that really a MM broker should offer GSLs on every trade for free because you're trading against them as opposed to an active market.
I feel pretty lucky that I've learned this relatively early on in my journey.🙂
Thanks for everyone's advice I'm finding this forum incredibly helpful. :clap:[/QUOTE]
Don't like the sound of this. I am just starting my SB journey and things seem like they are going to be hard enough anyway, it makes you wonder what else companies do to get the upper hand. Feeling slightly worried about getting into this. Thanks for making people aware.
I feel pretty lucky that I've learned this relatively early on in my journey.🙂
Thanks for everyone's advice I'm finding this forum incredibly helpful. :clap:[/QUOTE]
Don't like the sound of this. I am just starting my SB journey and things seem like they are going to be hard enough anyway, it makes you wonder what else companies do to get the upper hand. Feeling slightly worried about getting into this. Thanks for making people aware.
Last edited:
Stargunner
Active member
- Messages
- 127
- Likes
- 19
Moving markets isn't cheap. If a market maker wanted to hunt stops, they would have to throw all kinds of money about in the underlying to catch you out, and they certainly don't modify their price feeds by like changing their quoted gold price by from 1320, to 1319 at random. That would get them shut down by the FCA very quickly.
Market makers use 'A' book, 'B' book. This means they automatically trade against their newbies and frequent losers, as statistics say that they will make a net return, even if they let the winning trades win. If you win enough, they will start hedging your positions out to liquidity providers, so that they pocket the spread but don't try trading against you. Market makers also hedge any net exposure that is quite big. If everyone is buying the Dow, they might have a large short position they're not happy with, and so they do some proprietary trading to hedge the risk, and also take their own view on the markets.
There is absolutely nothing wrong with the market maker model where you use a popular, reputable, and FCA regulated broker who isn't slow at execution.
http://www.bloomberg.com/news/2014-...-puke-scammed-gold-price-to-cheat-client.html
This is how you move a market. Firstly you get caught, secondly it costs a lot of money, thirdly the cost of moving the market to take out a couple of retail traders betting positions would be stupid.
Market makers use 'A' book, 'B' book. This means they automatically trade against their newbies and frequent losers, as statistics say that they will make a net return, even if they let the winning trades win. If you win enough, they will start hedging your positions out to liquidity providers, so that they pocket the spread but don't try trading against you. Market makers also hedge any net exposure that is quite big. If everyone is buying the Dow, they might have a large short position they're not happy with, and so they do some proprietary trading to hedge the risk, and also take their own view on the markets.
There is absolutely nothing wrong with the market maker model where you use a popular, reputable, and FCA regulated broker who isn't slow at execution.
http://www.bloomberg.com/news/2014-...-puke-scammed-gold-price-to-cheat-client.html
This is how you move a market. Firstly you get caught, secondly it costs a lot of money, thirdly the cost of moving the market to take out a couple of retail traders betting positions would be stupid.
Last edited:
