Using fundamentals to trade, case in point AUD/JPY pair today. AUD data came out better than expected (record trade surplus) but AUD still being pushed down from 75.4 to 75.1 this morning. Reason: trade tension still far from being resolved
How to profit from forex then? easy, just follow a certain twit from twitter!
Iâm new to this forum and still learning the ins and outs (ha) and am going to start simulated trading. Iâve been around charts and indicators for years but only recently decided to try trading.
My question to you is:
Does an ECN type brokerage style inhibit the amount of fiddling the broker can do to your trades?
Intend using trading view as my platformâŚ
Hi.
Nope. It makes no difference. Up until a certain (proper and huge) trade size the broker will be the counter party to your trades. Most all around here are not trading lot sizes that warrant their trades going to the actual market. Therefore all a broker is saying when they purport to be an ECN broker is that youâre not going to have to wait for a dealer to execute your orders. But this doesnât mean that they donât have control. And trading with an ECN broker also doesnât mean that youâre not going to be re-quoted or not be able to get orders executed instantaneously and at your exact price. Thatâs just a function of the market. And donât be fooled by demo accounts i.e. orders will ALWAYS be executed immediately. Doesnât work like that in the real world. And given that this is a thread about trading the news I can only assume thatâs why youâre asking. Youâre wasting your time and itâs just that simple. If youâre lucky: itâll work on a demo account. And thatâs about it. And I see all these weird and wonderful ideas e.g. hedging before the news comes out. Itâs nonsense. So you make on one end and then youâre left with the losing trade on the other side. And then??? What if price doesnât retrace after the release???
Anyways. Carry on. Most will ignore the warnings (not directed at you specifically).
Oh and by the way I just want to add here:
Itâs not always the broker that trying to nail you. I trade with (arguably) one of the best and most honest and regulated brokers on the planet. Take a look at the chart on this thread of mine (link below) from yesterday (which I posted for a laugh). It was the RBA (Australia) rate decision. Even with MY broker you would not have been able to trade that release. It happened in a second. By the time you hit the trade button the move was either half way or fully over or the broker could not execute fast enough. Itâs just not a way to make money. But itâs a good way to lose it. And not only that: take a look at the number of points (well in your case pips) in that entire movement. In order for it to have amounted to anything youâd need to be trading a fairly decent lot size. And the bigger the lot size: the more difficult it becomes to have orders executed (in the real world of course).
i must correct you here.
all brokers have an a-book and a b-book.
there are specific algorithms which guess the trading knowledge / skill of a trader. they take (under a lot other factors) position sizing, rr ratios, risk ratios and trade amounts into consideration (they also use the data you feed them when opening an account, they ask you how much experience with what kinds of products you have etc) to put the trader in the correct category. depending on these factors the broker (and its algorythim) will decide to either always wire your trades directly to their liquidity provider or to be the counterpart on his own.
i could give you more details on these factors they use to decide but it wont make much difference to anyone here as even if your broker is your counterpart, there are very little (if none) brokers who can/will abuse this against you.
one sure way to make sure your broker is never your counterpart in your trades is to fund your account with 100.000+ as those accounts are always DMA to any broker that exist (seychelles, virgin islands, london or any other location and regulation).
edit: sorry i forgot to say what i wanted to say. if you show enough experience a 2000 account will also be a DMA account and your broker never your counterpart, as they dont want to lose money, even 50 bucks is too much lost money.
No problem.
Doesnât matter how you fudge it: there is a discrepancy made between trade sizes and traders who know what theyâre doing and those that donât is all Iâm saying. And itâs wishful thinking that somebody with a $100 account is having their trades routed outside of the broker. And even with thousands of those types of accounts: there are algorithms that will automatically offset the brokerâs risk once it reaches a certain percentage. Well thatâs at a reputable broker anyway. Others will just start mucking with your trades so make sure theyâre good to go.
Anyway. You are quite correct i.e. +$100 000 and youâre probably good to go. But given the posts I see here everyday: well thatâs my point really i.e. not something that 99.5% around here need bother about.
Just saw your edit. I wouldnât bet on that. As I said: theyâll offset their risk when a certain cumulative percentage is reached.
pretty much all brokers are exactly the same. the sorftware they use, the liquidity providers they have etc.
99% of brokers do not use their own software (all of the brokers advertising here and brokers ive seen people mention) but use 3rd party prodiverds software. the industry is kind of complicated but one is eas to explain: the brokers name (and reputation) is its own real asset, everything else, software, strategies etc is beeing done by suppliers to those brokers. you can trade with a reputable broker with the location in London and with a no-name broker in cayman island, the result is the same, the trade will be handled on the same account of the 3rd lvl provider who works for the 2 brokers, even when you call both the brokers its more than likely that the person you talking to is working for as little as 5-7 different brokerage houses to talk with you in all their names.
generally a small account always starts on the b-book. when/if you make some winning trades they will move you to the a-book asap to reduce their losses.
Well. In fairness I can only comment on the REPUTABLE broker that I used to work for and all was in-house insofar as proprietary software etc. is concerned (excepting the MetaTrader side of things really).
but there is a easy way to figure out if youare a a-book or b-book account.
if during high volatility news your trade gets open and closes almost instantly then you definately are a b-book client and you trade against your broker.
if your trades need a few seconds in high news spikes (even if its tiny trades) to open and close, then you have DMA and you trade on the a-book.
Now isnât it funny. EXACTLY. But most will argue with you and assume it should be the other way around!!! LOL!!!
I have never tried to trade news events, I have found enough ways to donate to the brokers.
I use a simple approach on daily charts, probably miss a lot, but I do not get caught too often for losers.
Years ago I tried the faster charts where news has quite an influence⌠not a good time for me.
I think the big guys, like banks and hedge funds, have a way to manipulate Forex and they can clobber retail traders in seconds.
Thanks for the info⌠that was my first post on baby pips so of course Iâm in the wrong topic.
I have no intention of trading the news. I intend using trend and a couple of indicators that I yet have to trial. If testing doesnât work out then Iâll try flipping a coin
The chart sure is an eye opener!!
I donât see the link to your broker⌠Iâm in Australia pepperstone is a recommended abroker