thank you , i have a question …did you not point me toward another thread (a few posts above)? (it seems it has been modified to who is the counterparty in a exchange? ) …i was trying to read it (the original)
I put up a link to the ECN thread… but Forex.com posted the Counter Party thread which was a better quality thread, so I just added it to my post as well… nothing to hide, just answered your question better. See below…
i was looking for this particular part of one of your posts where you say suggest the brokers platform (algorithm) is tweaking certain parameters in your trade so that you lose the trade (and he profits)
“I now understand why once I open a position that it instantly goes against me. It’s my Brokers algorithm scrambling to flatten its risk by placing a trade(s) against my position. Some of the “FX Dreamers” on this site seem to think it’s an illusion.”
is this still your opinion ? if yes how to counter-act?
I am looking and forex charts and was guessing one candlestick should open where the other (prior) closes but it’s not like this. someone care to clarify?
Are you able to post an image of the chart in question…
It can happen during news releases or especially at Market open on a Monday…
Ok, I assume you are referring to the last three white candles…
At times price is moving quick enough that when one candle closes and the next one draws that it “gaps” up or down as the new candle is drawn… especially on short TF charts (like the 1min displayed) It’s just the price feed still flowing in the milliseconds the platform is generating the next candle…
On this particular example, it’s a very small amount, maybe ~0.3 - 1 pip while the new candle was drawing…
1 Like
“Since so many traders watch these same levels (support, resistance, candlestick patterns, Fibonacci retracement etc) and place buy and sell orders on them to enter trades or place stops, the support and resistance levels tend to become a self-fulfilling prophecy.”
what I don’t understand is that (if using a ecn broker- if there even is such a thing as true ecn broker) and everybody is buying for example based on a signal or a combination of signals …and there are more buyers than sellers (thus the price going up because of the buying pressure and earning a potential profit for the buyers and loss for the sellers) who ( in ecn type broker trading) is stupid enough to take the other side of the trade and just throw you money?
also if there are more buyers and the price is going up…how can the software find enough sellers (witch are in the minority) in order to pay the buyers?
it doesn’t make sense
This is very true… we are all looking at the same price on roughly the same charts…even Indicators such as when the RSI crosses below 30 on the EURUSD possibly generates a flux of Buy orders…the same way when price hits the top Bollinger Band generates a flood of Sell orders into the market…but you’re referring to retail trading which is a mere “piss in the ocean” of volume when compared with funds that the interbank market moves through FX everyday…
True ECN (STP) is available… just large accounts (maybe ~100k+) are required to access directly to the market…[quote=“alexslabu23, post:48, topic:136016”]
what I don’t understand is that (if using a ecn broker- if there even is such a thing as true ecn broker) and everybody is buying for example based on a signal or a combination of signals …and there are more buyers than sellers (thus the price going up because of the buying pressure and earning a potential profit for the buyers and loss for the sellers) who ( in ecn type broker trading) is stupid enough to take the other side of the trade and just throw you money?
also if there are more buyers and the price is going up…how can the software find enough sellers (which are in the minority) in order to pay the buyers?
[/quote]
There are far more enlightened traders on this site than I that can explain the inner workings of price action… …
Two good recent articles that explain the questions you are asking… Hope this helps…
ok but I repeat my question…ifeverybody is trading based on a signal / multiple signals that show for example that you should BUY …who is dumb enough to take to opposite side of the trade? and how exactly is liquidity provided to all those winning trades?
there is also another thing that is bugging me…how are transactions realized taking into account the fact that price fluctuates and there is a very slim chance to find someone that pays you the exact same value but in opposite currency? because it’s not like price stays the same so that you can easily find someone with the same value in counter currecy…you have a few (or a few more) pips difference…so who pays that? It drops from the sky?
A couple if things;
Firstly, as a retail trader its a virtual certainty that your orders are not actually executed at all by your broker.
Secondly, the fxmarket is so big there is almost always a buyer/seller at every pip level, plus your brokers t&c’s probably state that they will open/close trades at the closest price they can obtain to the one you want, not the exact price
" Firstly, as a retail trader its a virtual certainty that your orders are not actually executed at all by your broker." that’s why I said true ecn broker ( if there really exists one)
“Secondly, the fxmarket is so big there is almost always a buyer/seller at every pip level,” what do you mean by pip level? you mean transactioned sum?
" plus your brokers t&c’s probably state that they will open/close trades at the closest price they can obtain to the one you want, not the exact price"
maybe…but that would mean there’s an aproximation going on for both participants of the trade
still if I for example buy 10 000 euros at 12 000 dollars…probably there will be someone else who sells the pair (and is buying 12 000 euros) but if the pair goes up 10 pips …than who is willing to buy 12010 dollars? …only someone who sells (at the exact same time) 9 . 991.3 euro! what are the odds of that …but what if the price fluctuated with 12 pips (for you)… or with 43 (for you)…54…13…35. do you mean forex is capable of pairing up all these very odd pairs of numbers based on the same difference in pips but on the opposing side (currency) ? what about if the other party has other pip difference? you must also take into account that generally the counter party of your open isn’t the counter party of your close…you may have the same open (on other sides) at the same time but not the same close…so the system has to pair you with somebody that has bought or sold at a different pip value for him and a different pip value for you! what about custom lots, that’s even trickier … do you understand what I am trying to say?
Hi Alexslabu.
True ecn brokers do exist, but they tend to require larger deposits than most retail traders can afford.
There are so many transactions in fx daily, that on the major pairs there will be buyers and sellers orders waiting to be triggered on almost every pip. During periods of low volatility there are fewer buyers/sellers or an imbalance of them, so spreads widen.
As different traders have different strategies and interpret the same chart differently, while you may see 12010 as a signal to sell, someone else may see a rise to that level as confirmation that price will rise further, so they will buy
1 Like
ok but…I’ve bought 10 000 euros at 12 000 initially than the quote moved up to 12010…so I dicided to sell in exchange for 10 008.3 euro (or something like that)…the person that buys now because he/she thinks it’s a good idea…probably does so at 10 000 not 10 008…so how do I get my 8 euro? :)does it fall from the sky? that’s what I ve been asking!! good question right, a legit good question I’ve been asking in one way or another since I’ve been on the forum, and nobody, even veteran members seem to not be able to respond.
could it be because…dum dum dum…they don’t know themselves? I wouldn’t go anywhere near trading before I fully understand the inner workings of it , but some members seem to do it anyway even so…i mean when know about Fibonacci, eliott wave and other “sophisticated” stuff but can not respond to a basic question about the inner workings of it…and some members tell me, well" just order a burger at mcdonalds, don’t ask how it’s made !" - this I find disturbing
1 Like
People have been trying to help you, you just don’t seem to have understood them.
After the above little remark, I for one won’t be replying to you again
well this is just nonchalant attitude on your side…I asked a legit question , and you probably still don’t know the answer…than I pointed out that people SAY they know what they are doing (even veteran members)but they don’t (know everything) witch is true…prove me wrong please! you are probably tired of me, but what about me that gets answers like " go at mcdonalds and order the burger, don’t ask about how it’s made! " ? I’ve been asking this question in multiple shapes for about a week now and nobody seems to have a to the point answer, only half ones…so how should I feel?
anyway I am not trying to be disrespectful, sorry if you perceive me like that…i am just trying to point out toward a pretty serious problem…and some either tell me not to think about it…either to do research on my own and stop asking inconvenient question…either they give me half answers that don’t really do it for me like …“the market is extremely liquid”
“.I’ve bought 10 000 euros at 12 000 initially than the quote moved up to 12010…so I dicided to sell in exchange for 10 008.3 euro (or something like that)…the person that buys now because he/she thinks it’s a good idea…probably does so at 10 000 not 10 008…so how do I get my 8 euro?”
they can’t pay me unless they buy 10 008 !! and what are the odds of that?
but what if the price went up 15 pip…they would have to buy at exactly 10 012 and who does that? …if the price went up 30 pips they need to buy at 10 024 in order to pay me…and who does that? the point is nobody will change their lot size based on paying me ! this is a legitimetly good question !
@eddieb is right… I have returned over 10 posts on the forum answering questions and via PM… there is no simple answer… There will be 100’s if not 1000’s of articles on FX both retail and Interbank out there on the Internet…
I added two links to articles in posts above which go someway to explaining the FX market yet the links remain unchecked, read them… It’s the part of FX that you will have to research yourself…[quote=“alexslabu23, post:55, topic:136016”]
could it be because…dum dum dum…they don’t know themselves?
[/quote]
I have other members here on BP I can go to for attitude… I agree with eddieb… lose the attitude…
2 Likes
I meant no disrespect man, was just asking a legitimate question that nobody is able to clarify (I am saying this with the most objective of tones possible, it’s not an insult) than people say they “tried to help me” but not by answering the question, and because they don’t know to answer they suggest i’m stupid, it’s understandable that I get a bit upset …so who’s fault is it? I just asked how am I able to get paid (on a ecn type broker, by trading with others) if".I’ve bought 10 000 euros at 12 000 initially than the quote moved up to 12010…so I dicided to sell in exchange for 10 008.3 euro (or something like that)…the person that buys now because he/she thinks it’s a good idea…probably does so at 10 000 not 10 008…so how do I get my 8 euro?" but for me the answer is pretty clear, it cant work unless somebody does in fact buy at 10 008 from me…witch is highly unlikely (and i tried giving a pretty simple example as i started from a round sum i could have gone with a more “crazy” custom lot) …people say oh no the market is very liquid…but i find it highly unlikely that it actually covers EVERY pip variation you can exchange! we are talking about too wacky numbers people just don’t trade! like i need exactly 9347 dollars in exchange (just an example) …its a question of will my random value (After variance due to price change ) equal another parties random value of the opposite currency (after variance due to price change) AND to do this at about the same time …I will do my research , as I am doing it now…but when you are not finding answers, you ask people more experienced than you … nobody is offering a straight answer…even the veteran members…who get cranky when I tell them this. I repeat I am not trying to insult anybody, be disrespectful, am just saying facts
Your not actually buying the currency… you don’t own anything when you trade FX… you are trading via a CFD…(Contract for Difference). You are betting whether the pair go’s up or down, nothing more… the other variables in your question are Lot size…Leverage… and the pair you are trading… not just the EUR but the other side of the pair…USD, JPY, AUD etc… so no one can give you an actual answer because the other 3 variables will change the result…
You will have to do a bit more research on exactly what an FX position entails so you will be able to answer that yourself… No one is trying to be difficult… you’re asking how long is a piece of string…