let’s assume we trade forex. System is good, it returns you 30 percent per month. Let’s not stick to this is it possible or not, but let’s assume we make 30 percent return on investment every month. Let’s assume forex daily change is 4-6 000 000 0000
If our initial capital is 10 000, this would make compounding interest in
Now where is limit? What happens if I buy/sell 1000 000 000 USD/CAD at a single trade? Does market crash or do I even manage to get such an amount from fx-market? Is there enough bears/bulls?’
How about is I spent only 1000 000? Where goes limit that it would have some kind of affects to markets?
What kind of limits there would be? How would broker handle this situation?
With a fair success rate and chance/reward proportion, a devoted forex informal investor with a good methodology can make somewhere in the range of 5% and 15% each month, because of influence. Keep in mind, that you don’t require a lot of money to begin; $500 to $1,000 is generally enough.
I didn’t ask if it is possible or do I want to be rich. Actually I asked you to skip this question.
Question was what is amount of money that affects to fx market so that price would dramatically change or there would other change and what are those changes?
Your question is wrong. With so called Forex brokers - you are just betting with the broker. You have no effect whatsoever on actual Fx market. Ofcourse unless you are a big name dealing big money direct with banks.
Forex is a true global market, with buyers and sellers from all over the world trading trillions of dollars every day. Because foreign exchange trading has become such a worldwide industry, macroeconomic events from all around the world now have a larger influence in forex than ever before. Traders are no longer bound by popular currencies, although they are an excellent place to start.
This would be a good question for any members that work on the trading floor on a bank… if there is any? I’m pretty sure once you start trading with a certain amount of digits in your balance most brokers are going to start raising conversations particularly to protect their liquidity providers. I know that if you were to apply such a model to cryptocurrency markets and your orders actually went to market not just a cfd that may or may not make it to an otc order. Then you can eventually move the market with enough given capital, being a market maker as it were. But forex is a different ball game. I believe the banks have an infinitely deep pocket to ensure theire spread remains in theire favour. And as most forex is traded by algorithms your very unlikely to get the better of them financially, you may fill out one order but another will appear. I read that at peak times in the market you could drop 6billion into positions and not even move price a singular pip. Problem here is that most run of the mill brokers are going to have to get a requote if orders exceed say around 500million so getting orders filled aren’t going to benefit you directly without having further capital to fall back on, the dealer never goes all in so you’d be at a disadvantage when you are . Also all this is going to be useless if your broker doesn’t have access to the kind of liquidity providers able to back your order in the first place. You’d need to be talking institutional grade.
The boss of a UK firm once said that the penalties for getting caught trading against a client here are too severe for it to be financially worthwhile. Plus the chances of keeping it secret are nil, as the next employee to be made redundant would be straight round to the FCA and spill the whole story.
Which means its only possible that a rogue employee could trade against a client but not the broker. even then, they would have to make huge money to make the risk worth taking.
As for brokers who are not heavily regulated - its anyone’s guess.
The forex market can take a lot out of you, especially if you are not used to it. When you first start out, don’t be surprised to feel depressed and hopeless at times. That being said, I would still recommend using forex, since it can give you a lot of endorphins and dopamine, and is in general something that can help your mental health.
After many years been drawn into brokers FX game I realised how these “false” brokers emerged.
Normally the banks allow only big transactions and I assume they are genuine transactions where buy and sell occurs without any open positions and subsequent exposure to market. Just like you buy/sell anything, buy it, keep it then sell it if you wish. That is to me FX market. Our brokers falsely claim they are brokers between you and banks for same i.e. they pass every deal you open to the bank. That is rubbish. If they say they use clients account once mature enough and pass it to the bank then that is their own bank transaction. They can do it for themselves as any business. To attract clients they created the concept of leverage so that they attract clients for the dream basket of gold. They know the leverage is to their own benefit so that you lose more and since human psychology is grab early lose late then in the long run we all are losers except brokers.
So in short brokers yes they use interbank charts (possibly they pay for it) and it is their primary tool for the betting. This is not FX market but FX based betting shop just like football polls (with no concept of leverage or with…). They don’t need to manipulate the charts against you because you lose anyway but some play a bit with spread…etc.
I have noticed very often that I open a position it goes quickly against me but when I win it moves slowly. or brokers hitting your stop loss and many such micro tricks. But I don’t see as the problem. The problem is the betting concept that is masked from people.
I was client for IG as example. During Brexit they did not allow clients opening new positions. When I asked them why if the risk is to banks why you worry…they didn’t even understand me because that is the way they work. If you win they lose or another client loses, it has nothing to do with bank transactions apart from using the charts.
If you want genuine FX open multi-currency account then buy/sell as you see fit without leverage or exposure to market.
There is also plenty of secondary products: various analysis methods, robots, videos, I am aware that analysis and news will have effect on true FX, so it could be right but for the wrong purpose.
Hi @Jckbt, @kadhiem is correct in what he has posted… It’s a very grey area about what really goes on behind your Brokers front door… Below is a YouTube vid explaining how (most) Brokers in these markets make money from retail FOREX.
Can you tell me more about it exactly?
Some of the most famous professional traders - what chart did they use?
So you mean is there no way to make money in forex market?
You can win given a window of time. If so you are winning the game set by these false brokers and they can’t stop you. But since you will not stop then you are likely to lose at the end…with very focused skill and experience in this game you may make some money.
The fact remains that these brokers are getting profits from losers with some profit passed to current winners who likely will lose anyway. Exceptionally careful players can make money to some length of time.
