In one article, It said: “After some time, if you have consistently made profits, your broker will re-assign you to “group A” – these are the lucky 5% of traders who consistently make money. After you have joined this group your broker will lump your trades with all of the rest of group A and hedge against your trades. So, for example, if all traders in group A have bought the EUR/USD your broker will place a trade in the interbank forex market to offset any profits group A make on this trade.” ==> Link: How Your Forex Broker Makes Money
In another article, It said: “Forex brokers are the intermediaries between clients and the interbank market. As market makers themselves, brokers pool the orders of their customers together, match buy and sell orders internally with each other, and pass the remaining balance to the interbank market in order to meet orders. Thus the amount of orders communicated by brokers to the banks is smaller than the total amount of orders received by them.” ==> link: wikinvest.com/wiki/Interbank_market]Interbank market
According to these, Forex Brokers will pass Orders (with high leverage 1:200, 1:300, 1:400…etc) to the Interbank Market, so How money will go after being passed in Interbank Market? If Those Orders loose money, Who in Interbank Market will get money? If Those Orders get money, Who In Interbank Market will loose money?
I really think alot about this. Hope your answers. Thks.