Quote:
Originally Posted by forexchess
OK, in no particular order:
1) Does anyone else here use Forex eSignal? It comes free with my account but I haven't the slighest clue... is it supposed to give you arrows (a.k.a. signals) like red when it thinks a pair is going down and green when it thinks it will go up? Or is eSignal rather a fancier platform for complicated technical analysis?
2) I read a lot here about brokers being out to get you (e.g. forcing stop orders... banning scalpers... etc, etc.) OK, I'm wondering, why the heck would brokers care if you make or lose money? Don't they just make money either way from the spreads? I can't understand how it's in their interest for their customers to lose on their trades...do they somehow make more if you lose and less if you win?
3) Who provides the leverage? When you can buy/sell 100k with 1k of your own money, who puts forth the other 99k... the broker, the big (inter?)banks or someone else altogether?
I thought I had more but they escape me at the moment so thanks in advance to anyone who can help clarify.
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hey, im gonna do my try to answer your questions to the best of my knowledge. hope this helps.
im not too familiar with eSignal.but im trusting that you downloaded and read the user manual, right? im sure someone will be around to help you with it. i dont think that esignal give actual signals of weither to buy or sell. but if thats is what you are looking for then i have to earge you to be careful with following signals from other people. most signal programs offered dont give consistant short term profits. its better to develop your own system and trading plan then to rely on others. anyways , this is what im seeing
http://www.forex.com/forex_charting_esignal.html. it seems to be a system that connects to esignal charts so you can trade and put in stop,limit, entry etc orders and watch them on the charts. the esignal charts are given free with the opening of a real account (at least 1000 bucks) but you can sign up for direct execution on the charts.
I belive with many MM brokers (most brokers are Market makers) actually are the main counterparty to your trades. so when you loose they make money so there is alot of benifit for them if they chose to stop hunt, knock you out then take over your positions.they also have the ability to manipulate the data feed for their benifit. if you check forextown i give a whole list of sites that are worth reading that can explain this whole thing better then i can. its almost like gambling with some brokers. some traders even coin them bucketshops. when your brokers is the house, you are the gambler then chances are you will loose. so far you dont need to be too alarmed by brokers. if you are an long term or an med term trader then all the scandleouse activities wont affect you much. if you are a news trader or a scalper then you need to listen up.
http://www.investopedia.com/articles...arketmaker.asp (read the cons of MMs)
the leverage comes from your broker. i believe your leverage is just a pooling of margins from other traders to make up the 100K. im not too sure. but i know that its your broker that give you the leverage. not the interbanks.
i hope i did a good job of explaining things.