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DEMO ACCOUNT vs LIVE ACCOUNT

FxMasterGuru (FxMasterGuru)
Nov 30 2016 at 15:33
1608帖子
Xgavinc is right. Most non-FCA brokers do take the opposite trades, i.e. B-book their clients...

Which makes sense as 95% of high-leveraged retail traders lose their deposits, so they can collect not only the commissions, spreads and swaps from them but they can get EVERYTHING. In other words: they act as a real casino.

There is nothing wrong with B-booking itself until after most (or all?) B-booking brokers place their parasite ''virtual dealer plug-ins'' on their clients' accounts...

Usually brokers wait 2-3 months and they launch the parasites only when their customers become 'comfortable' with them and invests more funds (to lose) to them...

Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
VickyJones
Nov 30 2016 at 15:42
45帖子
snapdragon1970 posted:
they risk out your trade to the banks and other large players , other trades are in house.


@xgavinc I think this means that the broker does not take the opposite side of the trade but pass it to the banks, right? So here the broker is a simple transmitter of the order. Maybe this was what Nina referred mentioning the hedge and kieran replying with 'yes'. Just wanted to clarify for myself this point in the discussion.

VickyJones
Nov 30 2016 at 15:47
45帖子
xgavinc posted:
'In effect, any Broker claiming an STP/NDD/DMA/PRO offering, may nevertheless “Make the Market” even if only partially (i.e. STP 50% of clients’ orders and make the market on the other 50%). In theory, there is nothing wrong with this configuration as long as the Broker runs an ethical business.'


Extremely precise quote! I think I read about this before somewhere but I cannot agree more. Thanks for bringing the aspect of broker ethics to the discussion! 😄

kieran (snapdragon1970)
Nov 30 2016 at 16:39
1945帖子
VickyJones posted:
snapdragon1970 posted:
they risk out your trade to the banks and other large players , other trades are in house.


@xgavinc I think this means that the broker does not take the opposite side of the trade but pass it to the banks, right? So here the broker is a simple transmitter of the order. Maybe this was what Nina referred mentioning the hedge and kieran replying with 'yes'. Just wanted to clarify for myself this point in the discussion.

Yep , commission on the sent order , no risk on there book.

"They mistook leverage with genius".
xgavinc
Dec 01 2016 at 08:08
235帖子
VickyJones posted:
snapdragon1970 posted:
they risk out your trade to the banks and other large players , other trades are in house.


@xgavinc I think this means that the broker does not take the opposite side of the trade but pass it to the banks, right? So here the broker is a simple transmitter of the order. Maybe this was what Nina referred mentioning the hedge and kieran replying with 'yes'. Just wanted to clarify for myself this point in the discussion.


Well, for it to be a hedge on 'risking out', they would have to take the opposite side, then hedge that (new trade) with banks, LP's, and / or other brokers (so you end up with [1.client-broker], [2.broker-bank] trades). If it goes out directly (after spread or commission is taken), then the only risk to the broker is the client's account, not the trade (client unable to cover margin).

For every loss there should be at least an equal and opposite profit.
xgavinc
Dec 01 2016 at 12:07
235帖子
@VickyJones Just to clarify though... if 'risk out' refers to your order cleared straight through, then the broker would not take an opposite position. Chances of this are small though. You authorize your broker to act as clearing agent for your orders, why?, because unless you place large orders (a standard lot at once for example), the bank would not accept your little order of 0.01 mini / micro lots, etc. It's more effective to match you with in-house fellow traders, traders at other brokers or liquidity providers that accept small lots, if they cant match you with those avenues they batch the orders together and at the end of the day send out one large order to the bank (straight through), or take that batch and hedge it against their risk profile with the bank.

Only the big fish play in the big pond, the big fish will take your orders and group them up into a large order to put into the pond, unless you trade 10 standard lots (or whatever the requirement), you will not get access to the big pond... welcome to the fishbowl 😁

Private hedge fund managers for example act as, and register as their own clearing agent (they get direct market access - not to be confused with 'market execution') - If you say, 'I lost $10 000 last year', they say, 'oh, yeah, I lost that yesterday on one trade'. 😎

For every loss there should be at least an equal and opposite profit.
kieran (snapdragon1970)
Dec 01 2016 at 13:34
1945帖子
xgavinc posted:
@VickyJones Just to clarify though... if 'risk out' refers to your order cleared straight through, then the broker would not take an opposite position. Chances of this are small though. You authorize your broker to act as clearing agent for your orders, why?, because unless you place large orders (a standard lot at once for example), the bank would not accept your little order of 0.01 mini / micro lots, etc. It's more effective to match you with in-house fellow traders, traders at other brokers or liquidity providers that accept small lots, if they cant match you with those avenues they batch the orders together and at the end of the day send out one large order to the bank (straight through), or take that batch and hedge it against their risk profile with the bank.

Only the big fish play in the big pond, the big fish will take your orders and group them up into a large order to put into the pond, unless you trade 10 standard lots (or whatever the requirement), you will not get access to the big pond... welcome to the fishbowl 😁

Private hedge fund managers for example act as, and register as their own clearing agent (they get direct market access - not to be confused with 'market execution') - If you say, 'I lost $10 000 last year', they say, 'oh, yeah, I lost that yesterday on one trade'. 😎

Good post.

"They mistook leverage with genius".
Gabriel (GFernandez78)
Dec 04 2016 at 07:51
35帖子
I think it depends on the broker you are trading with. If the broker transfers all orders to the banks - the size of the individual orders does not matter but the total amounts are what banks are interested in over a period of time. Here comes also the aspect of aggregation of all orders that was well explained already 😄

Trading is like football - if you don't practice you can't win the game!
Nina (NEEnah)
Dec 04 2016 at 08:34
71帖子
xgavinc posted:
snapdragon1970 posted:
xgavinc posted:
I think generally (with all the stink of price manipulation, misrepresented quotes, etc. in the past, and large fines) even brokers with that license will use that as a last resort, only to provide liquidity where there is none.

My point in the beginning was that an opposite side of the trade is not a hedge (would be the same as saying that every trade you make is a hedge). They would have to make another opposite trade of the same pair or offset that trade with something else (Gold being popular). Until you make another correlated trade, it's not a hedged trade.

Corruption is rife licence or no licence , I think I know what a hedge is , but thanks , good that people can read posts like this otherwise they like sheep.


Was explaining for Nina, not you 😉


Thank you and kieran for providing the explanations! I find it very useful!

VickyJones
Dec 06 2016 at 13:37
45帖子
xgavinc posted:
@VickyJones Just to clarify though... if 'risk out' refers to your order cleared straight through, then the broker would not take an opposite position. Chances of this are small though. You authorize your broker to act as clearing agent for your orders, why?, because unless you place large orders (a standard lot at once for example), the bank would not accept your little order of 0.01 mini / micro lots, etc. It's more effective to match you with in-house fellow traders, traders at other brokers or liquidity providers that accept small lots, if they cant match you with those avenues they batch the orders together and at the end of the day send out one large order to the bank (straight through), or take that batch and hedge it against their risk profile with the bank.

Only the big fish play in the big pond, the big fish will take your orders and group them up into a large order to put into the pond, unless you trade 10 standard lots (or whatever the requirement), you will not get access to the big pond... welcome to the fishbowl 😁

Private hedge fund managers for example act as, and register as their own clearing agent (they get direct market access - not to be confused with 'market execution') - If you say, 'I lost $10 000 last year', they say, 'oh, yeah, I lost that yesterday on one trade'. 😎


Thanks for the additional clarification, all makes sense 😄

@GFernandez78 Good point about the aggregation!

kieran (snapdragon1970)
Dec 06 2016 at 14:42
1945帖子
FCA cracks down: Shares of IG Group Holdings PLC (IGG.L) tumbled 32% and CMC Markets PLC (CMCX.L) sank 30% after the U.K.’s Financial Conduct Authority said it plans to crack down on the sale of certain financial derivative products.

"They mistook leverage with genius".
HarriOshord
Dec 08 2016 at 14:00
19帖子
all that can be said has already been said, so I better show you ...
My small contribution to this discussion

附件:


kieran (snapdragon1970)
Dec 08 2016 at 14:04
1945帖子
HarriOshord posted:
all that can be said has already been said, so I better show you ...
My small contribution to this discussion

Air Force 1 Trump style.

"They mistook leverage with genius".
Jack (jackell78)
Dec 08 2016 at 15:22
45帖子
snapdragon1970 posted:
HarriOshord posted:
all that can be said has already been said, so I better show you ...
My small contribution to this discussion

Air Force 1 Trump style.


Haha, such an Air Force would have a solid impact - it's tested on demo! Just kidding 😉

Karel (Bohdan73)
Dec 09 2016 at 09:20
51帖子
snapdragon1970 posted:
FCA cracks down: Shares of IG Group Holdings PLC (IGG.L) tumbled 32% and CMC Markets PLC (CMCX.L) sank 30% after the U.K.’s Financial Conduct Authority said it plans to crack down on the sale of certain financial derivative products.


Do you know which derivatives? I heard there was a ban on some advertisement type, maybe it was about bonuses or something. Seems things are getting more regulated these days.

Trade with determination!
rob559
Dec 09 2016 at 09:45
1916帖子
no politics ,no religion,no sex,if you want to stay safe

kieran (snapdragon1970)
Dec 09 2016 at 12:17
1945帖子
Bohdan73 posted:
snapdragon1970 posted:
FCA cracks down: Shares of IG Group Holdings PLC (IGG.L) tumbled 32% and CMC Markets PLC (CMCX.L) sank 30% after the U.K.’s Financial Conduct Authority said it plans to crack down on the sale of certain financial derivative products.


Do you know which derivatives? I heard there was a ban on some advertisement type, maybe it was about bonuses or something. Seems things are getting more regulated these days.

CFDs on high leverage for inexperienced traders , more information on risk loss ,no bonuses for signing up ,correct documentation.
Reporting of win/loss ratio of accounts lol.

"They mistook leverage with genius".
Karel (Bohdan73)
Dec 12 2016 at 13:47
51帖子
snapdragon1970 posted:
Bohdan73 posted:
snapdragon1970 posted:
FCA cracks down: Shares of IG Group Holdings PLC (IGG.L) tumbled 32% and CMC Markets PLC (CMCX.L) sank 30% after the U.K.’s Financial Conduct Authority said it plans to crack down on the sale of certain financial derivative products.


Do you know which derivatives? I heard there was a ban on some advertisement type, maybe it was about bonuses or something. Seems things are getting more regulated these days.

CFDs on high leverage for inexperienced traders , more information on risk loss ,no bonuses for signing up ,correct documentation.
Reporting of win/loss ratio of accounts lol.


Thanks for clarification! That is a long list of changes! 😄 Let's see if all will happen as planned by the regulators. Sounds good to me in general!

Trade with determination!
kieran (snapdragon1970)
Dec 12 2016 at 13:54
1945帖子
Bohdan73 posted:
snapdragon1970 posted:
Bohdan73 posted:
snapdragon1970 posted:
FCA cracks down: Shares of IG Group Holdings PLC (IGG.L) tumbled 32% and CMC Markets PLC (CMCX.L) sank 30% after the U.K.’s Financial Conduct Authority said it plans to crack down on the sale of certain financial derivative products.


Do you know which derivatives? I heard there was a ban on some advertisement type, maybe it was about bonuses or something. Seems things are getting more regulated these days.

CFDs on high leverage for inexperienced traders , more information on risk loss ,no bonuses for signing up ,correct documentation.
Reporting of win/loss ratio of accounts lol.


Thanks for clarification! That is a long list of changes! 😄 Let's see if all will happen as planned by the regulators. Sounds good to me in general!

There's more to come , meetings between brokers and regulators will be taking place over the next couple of months.

"They mistook leverage with genius".
Carlos (CarlosMZ)
Dec 12 2016 at 15:28
55帖子
I prefer more strict regulations as these makes me feel more secure. So my fingers are crossed that most of these changes will pass through and maybe spread across different countries/regulators! 😄

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