Behind the Scenes of FOREX?

Beginner Questions
1

Hi guys,

I have an interest in the behind-the-scenes aspects of FX. I originally had a couple of questions, such as:

  • Does price of a pair change ONLY when a trade is executed?
  • When I sell through my broker for major pairs, who is buying? especially when it’s a clear trend?

But I would also like to know what’s actually happening especially around the big banks and how often they influence change as well as their power in relation to the retail guys. If anyone has any resources around the more invisible aspects of FOREX, I would highly appreciate it, given that this isn’t the kind of stuff I’ll find out through screentime.

Thank you thank you thank you

2

hehe, wouldn’t we all like to know.

Mate, if you access behind the scenes, first of all , that’s called INSIDER TRADING and it’s illegal.
Steve Vizard went to jail for that

Secondly
it really looks like you need to understand ORDER FLOW and how it works

yes… Price changes ONLY when a trade is executed
if no trades were ever executed the chart would be a continuous straight line and there would be no incentive to enter the market, hence PROFIT WOULD NOT EXIST

but. you need to understand this
TRADE OCCURS FOR A MILLION DIFFERENT REASONS
someone buys a burger at mcdonald’s in America which then causes someone else to want to place a trade on the EUR USD to sell because Mcdonald’s in Europe is making less money than in USA and thus TRADE OCCURS

or someone exchanges notes at the airpoint etc etc

so yes… TECHNICALLY speaking… it’s only when a trade occurs
but they occur for so many reaons it’s not funny.

When you sell through your broker
THE BROKER IS THE FACILITATOR and takes a commission
now this can go in a few different ways
but the simplest way to understand is this

if you were selling EUR USD
and i thought it was going up

The broker would take your SELL order and match it up wtih me because i want to BUY

so… I WOULD BE BUYING THE OTHER SIDE OF YOUR TRADE
even when it’s a clear trend

you know why
because people are stupid
someone will swear to god that it’s going up and it’s a clear trend
another person will say , shut up you idiot, it’s gonig down… it’s a clear trend

this conflict of opinion facilitates trade HEHE

hope that helps

here is a useful video on ORDER FLOW

it will help you understand how trades are filled

3

Nobody is buying or selling anything at all: when you trade with a counterparty market-making broker, no currencies actually change hands at all when you “buy” or “sell” a currency-pair. All that’s happening is that you’re having a bet against the broker, who himself holds the other side of your “position”, and your account is settled, over each transaction, as if the “broker” had bought/sold something on your behalf.

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here another

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5

Thanks, Bob.

Order flow has nothing to do with trading with spot forex brokers.

Spot forex has no centralised market, and therefore there’s no meaningful “order flow information” available at all.

All a “broker” can provide is their own order flow, which is irrelevant.

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Been suxed into that before, examples can be found if one dives into my history here.

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9

Nobody’s questioning your motivation and intention, Martin.

But (as is rather often the case) your post does contain factual inaccuracies and is terribly misleading, overall, as you’ve completely missed the main point that Bob and Lukas are making above.

If you’re going to post as you quite often do, you’re quite often going to get better informed people arguing with you, in any forum. That’s the way the cookie crumbles.

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Hey Laughing Charlie

I have no problem with people arguing , i have no problem with people debating
I have no problem with you, but bob, seems to have a thing where he just is following a lot of my posts snd intentionally being an [removed for Forums violation]

now, i can’t figure out why, other than … he wants to start [removed for Forums violation].

Me, Personally
I don’t waste time with people like this
but i also don’t like there to be misunderstandings

so. i’m giving him the chance to change his ways and either fix it or we just part ways and he doesn’t comment on my posts and i won’t comment on his

i just want to sort it out, and in a way, i think it’s funny that you’re answering on his behalf… but… ok

as for inaccuracies,
i’m fine for people to prove me wrong
but, mate, HONESTLY, I’ve been doing this for 7 years or a bit longer,
I’ve been doing it succesfully,

Success is not an inaccuracy
and on the subject of inaccuracy’s
is it not true that almost everyone in the forex industry gets inaccurate information to begin with ?

but, we dont jump on them all and make a thing of it
we don’t follow then stalking them from post to post… do we ?

I just want to know what his deal is
and what’s the problem
simple as that

i cam here from not being here for a few years
saw a few posts
decided to help a few people out

i was thanked for my input
the only one that seemed to have an issue with anything was bob

so… yeah
i just want to work it out

any thoughts

11

lol didn’t Martha Stewart go to jail for insider trading too?

12

Not sure,
i know Steve Vizard did
i heard Renee Rivkin was into it as well , but then he passed away, i’m not sure if he went to prison at any stage for it

but Martha… i’m not sure

14

Where would they put all these “Rich” “Corrupt” people if they had to prosecute them all…?

In a Normal prison with all those other Baddy’s. ???.

Or Meaningless fines and then back to business Again.? = Then they both win :-1:

15

Topic has derailed a bit, but thank you for your info guys

18

You’re Welcome
and my apologies for that

it wasn’t my intention
and i want to finish it so we can get back to the point of helping people .