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Old 04-26-2008, 07:33 PM
mytwopips mytwopips is online now
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Join Date: Mar 2008
Location: Huntsville, TX.
Posts: 1,246
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I posted the below somewhere else. But it may help you too. It basically states what rhodytrader said.

"Brokers don't take our individual pidly orders to market. They use their liquidity for our orders and their computer matches the overall big picture of all client orders and hedges against that in the market. Then they can in theory make money from the spread by itself after their spread is paid. Shady speculative brokers may let some orders stay not hedged in the market for hopes that those orders are losers and then they keep your loss."

So bucketshops have to trade. Not necessarily because they want you to lose, but they have to protect their imbalanced exposure.

If fear keeps you out of this game, the same fear will keep you from being successful in this game.
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