View Single Post
  #8 (permalink)  
Old 11-28-2006, 10:03 AM
jonjon5000's Avatar
jonjon5000 jonjon5000 is offline
Newbie
 

Join Date: Nov 2006
Posts: 12
Default Stop Hunting

When a broker stop hunts, they look at peoples' accounts and find where many have placed their stop losses (usually they are around important support and resistance lines). The broker then, because they have the power to manipulate their quotes, goes in and makes the price hit the stops, closing many trades, to the loss of the traders and the profit of the broker.

Because, as everyone should know, the broker usually hedges against you and makes money when you lose yours. If you don't like it, switch to an ECN instead of a Market Maker (broker).
Reply With Quote