Lmax caveat emptor !

hyperscalper

Member
89 10
Just give them a call..

Who should I speak to who will give us a "guaranteed" and "real"
answer to the question of which client behaviors would be
undesirable to the point of banning that client?

Any others have real experiences, particularly with API trading
methods, where you were "warned" or banned ?

HyperScalper
 

BSD

Veteren member
3,819 985
Hyper, just trade futures via a real broker who doesn't care less what kind of a trading style you have.

Any broker telling ya what goes or doesn't go is just a clown masquerading as a bookie in a bucket shop.

I only trade futures and can do what I friggin like, when I friggin like, which is just the way it should be outsida loonie lala-land.
 

hyperscalper

Member
89 10
Hyper, just trade futures via a real broker who doesn't care less what kind of a trading style you have.

Any broker telling ya what goes or doesn't go is just a clown masquerading as a bookie in a bucket shop.

I only trade futures and can do what I friggin like, when I friggin like, which is just the way it should be outsida loonie lala-land.

Yeah, thanks, been there and done that. I moved to Forex which has
100x the fine lot size granularity of FX Futures. What I mean is that the
minimum exposure on FX Futures 6E is $12.50 / tick . EUR/USD spot
minimum exposure is anywhere down to $0.10 / tick enabling multiple
entry, incremental trading to develop an equivalent position.

That's why I am in Forex, for Risk Exposure control, and Cost Basis
Averaging. In Futures, 1 contract is the lowest available transaction.
Effectively, theoretically Forex allows 0.01 equivalent futures contract
size or any level of exposure in the entire range.

HyperScalper
 
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hyperscalper

Member
89 10
THOSE WITH DIRECT EXPERIENCE, I'M STILL LOOKING
FOR ANYONE WHO HAS BEEN BANNED DUE TO NEWS,
ARBITRAGE OR OTHER ALLEGEDLY UNDESIRABLE
OR BANNED TRADING ACTIVITY, VIA API FOR RETAIL
CLIENTS.

LMAX posts documents such as this, indicating that
there is recourse to a Financial Ombudsman:

http://www.lmax.com/pdf/Complaints-Policy.pdf

As concerns News trading, I can't find a document which
expressly forbids either News or Arbitrage trading nor,
indeed, any specific trading activity. But, as these are not
part of my strategy, I guess I'll not worry about it.......

There is a vague reference to "activity which adversely
affects the orderliness or function of the MTF". As if
a small retail operation could affect the exchange adversely...

HyperScalper
 
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Pippi56

Junior member
32 5
There is no such document. But lmax can decide to close your account without giving you a reason, just like you can close the account without needing to do any explaining.

Bottomline is that lmax had to agree to "police" their exchange for toxic flow, otherwise LPs would not have agreed to post firm quotes w/o last look. So if LPs start to complain you may have a problem.

But i doubt that you posting limits between the BBO can possibly be interpreted as toxic. On the contrary, adding liquidity benefits the marketplace (and lmax directly too, because for client to client orders lmax collects more fees. LPs dont pay fees to lmax for passive executions).
 
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hyperscalper

Member
89 10
There is no such document. But lmax can decide to close your account without giving you a reason, just like you can close the account without needing to do any explaining.

Bottomline is that lmax had to agree to "police" their exchange for toxic flow, otherwise LPs would not have agreed to post firm quotes w/o last look. So if LPs start to complain you may have a problem.

But i doubt that you posting limits between the BBO can possibly be interpreted as toxic. On the contrary, adding liquidity benefits the marketplace (and lmax directly too, because for client to client orders lmax collects more fees. LPs dont pay fees to lmax for passive executions).

Thanks. Take a moment to distinguish between "active" and "passive" executions. Also, clarify "client to client". I'm particularly interested in understanding the "mix" of LPs, direct LMAX brokerage clients, and "other" participants on the exchange. Got any insights on that?

For example, at Dukascopy there is no liquidity inside the spread, unless one of their clients happens to act as a counterparty. Everyone else on the book is a Market Maker and will not trade "wholesale" with you, as they are the "wholesalers". But on LMAX there should be a wider range of "non Liquidity Provider" participants who act as counterparties, which are themselves not the LMAX brokerage's clients? See what I'm asking?

Like, for example, on LinkedIn you might try to sell a product. But *everyone* on LinkedIn is trying to sell you a product; and there are no actual "clients" who would buy from you on LinkedIn. They're all on the hustle to sell something, not to buy from you... Just as an analogy. And a purely Retail brokerage, like Dukascopy, as good as it is, has a book which consists only of Liquidity Providers or Market Makers as I call them. There are no "retail guys" using Market orders to act as counterparties to your Best Bids, and when they do come in, the size is insignificant.
I know because I tried to play that game for a long time, and that's why we moved the wholesale scalping
objectives to LMAX.

Thanks and Good Trading !
HyperScalper
 

Pippi56

Junior member
32 5
Its just a stright up central limit order book, with a few exceptions. Liquidity providers, "general members" in lmax lingo, are not matched with each other, so there is the possibility of zero or negative spread. The general members dont pay fees if someone hits one of their resting limit orders. Thats all there is to know about that.

Wrt Dukas: i dont really trust them. Andre Duka is clearly a crank, also, they are russians. They do also give horrible last look privileges to their marketmakers, which can result in horrible slippage in fast market situations and i' m not sure at all that they dont interanalize flow after all.
 

hyperscalper

Member
89 10
Its just a stright up central limit order book, with a few exceptions. Liquidity providers, "general members" in lmax lingo, are not matched with each other, so there is the possibility of zero or negative spread. The general members dont pay fees if someone hits one of their resting limit orders. Thats all there is to know about that.

Wrt Dukas: i dont really trust them. Andre Duka is clearly a crank, also, they are russians. They do also give horrible last look privileges to their marketmakers, which can result in horrible slippage in fast market situations and i' m not sure at all that they dont interanalize flow after all.

Dukascopy is scrupulously honest. There's no "slippage". If you see slippage
it's mainly because you are "chasing" the market, and the market has moved
on... I have done extremely high precision scalping with Dukas, so I know
there is no slippage, lots of price improvement, and also almost zero
counterparty rejections, extremely rare.

So don't be so suspicious of them :) Even Russians are "honest" ... ;-)

HyperScalper
 

svenstuart

Newbie
3 0
How come all other brokers are OTC and LMAX is an exchange, whats the difference and/or benefit. Does that mean from the SNB event, everyone on LMAX exchange was fine?
 

Pippi56

Junior member
32 5
No, you will have to pay negative balances with Lmax, their risk disclosure is pretty explicit about that. And its the same with any other leveraged products traded on exchanges, such as futures. There is no reason why an exchange(or broker) should pay the losses of traders.
 
 
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