Came across couple threads on here about people discussing SL hunting Market Makers and quite a few said that all this is baloney... Since its Friday and I just finished analyzing the screws ups of the week, I decided to write a short post about the matter from my experience as my PERSONAL opinion. To begin with, Stock Trading and Options communities have a general consensus that some kind of 'shady activities' occur. It's actually almost a mainstream idea, thanks to movies like Wolf of Wallstreet and people like Musky with his 'funding secured'. Along with countless other charged and non charged insider trading individuals and entities. I imagine I don’t have to explain the ‘crypto’ market a place where they actually run ads to join a group and then pump and dump some shitty coin. Anyway enough of other folks, lets move on to Forex. To cut it simply, Banks have already been caught red handed collaborating in chat rooms on how to manipulate the price to their advantage. (https://www.reuters.com/article/us-banks-forex-settlement-idUSKBN0O50CQ20150520) So this should answer your question if there WAS Market Maker who moved markets.... Yes there was and its not some conspiracy theory, they've been found, charged, fined. Its up to you to decide if this is still going on or just stopped overnight. Do these people SL hunt your individual positions? No, but what they do is seek liquidity... Chances are, you have placed SL after your usual textbook analysis at a major support/resistance as many other retailers... Experienced Whale traders at CITI, JP etc know where you have these SL. They also know where you most likely placed your pending buy/sell with tight SL. All they have to do is drive the price enough to take out all of the above and stopped out positions will fuel their direction... Combine that with creation of some 'other pattern' and you have bunch of other people jumping on the train going same directions as the institutional trader. Job done. Now onto the Brokers. From my experience, there is no such thing as a good Market Maker Broker... Yes there are absolute awful unregulated ones with dealing desk where you will most likely never withdraw any profits and some not so bad ones like Oanda, Forex without a dealing desk. Ask how Oanda, Forex.com make their money... They will tell you its by spreads... Open up Oanda and check out average spreads and go to 'maximum' ... You will see some rather crazy spreads during news that if you ever traded on ECN would seem alien to you... Same goes to Rollover... Its up to you to decide if these things are just because Oanda and Gain have liquidity providers that are extremely in-flexible or..... Lets not go far for a recent example, just open up EUUSD 1Minute chart of todays closing. ECN broker closed today at 1.6220 vs 1.6225 aka 0.5 pip spread and thats as high as the price went in last closing minutes... Spread did not jump anywhere much really - I was there to watch it. Now lets open up Oanda chart on Tradingview... What do we see here? A spike to 1.16262 on last minute - now lets go and check Oandas maximum spread at this exact time, we find that it is exactly 6 pips. Lets look at the chart again and think where a small time 'retail trader' that trades on small TF's would put their SL. Probably at 1.16254, 1.16282, 1.16293 area and lastly (same as me) 1.16323 area... Neither one of these would have been hit if you traded with ECN Broker... All of these with exception of last one (would be a really close call) would have been hit by Oanda or Forex.com today. Again its up to you to decide if this is just because Gain and Oanda have such 'interesting' liquidity providers or a broker that makes money on spreads is... you know... making money on spreads... So here is my 2 cents... This again is my personal opinion.
Dealing Desk vs. No Dealing Desk Forex Brokers. Partner Center Find a Broker. Which type of broker should I choose? A dealing desk broker? Or a no dealing desk broker? That’s completely up to you! One type of broker isn’t better than the other because it will all depend on the type of trader you are. It’s up to you to decide whether you’d rather have tighter spreads but pay a ... A Dealing Desk takes the other side of my trade, and I don’t like that; ECN brokers aren’t safe because a crash can take them out of business, and my money with it . And both concerns are completely ridiculous. Let’s go over each. Dealing Desk . I’d say the majority of Forex brokers are Dealing Desk brokers. Non ci sono broker Dealing Desk offrono i seguenti vantaggi; No re-quotes, positions are generally executed instantly. Positive & Negative Slippage, Unlike dealing desk brokers who pass on only negative slippage, no dealing desk brokers pass on negative and positive slippage, thus balancing the negative impact of slippage over time. No Dealing Desk. Forex Brokers can offer either Dealing Desk or No Dealing Desk execution models. Brokers offering a dealing desk are also acting as market makers; they generally create their own liquidity, setting the bid and ask price themselves and taking the opposite side of a client’s trade. Brokers operating No Dealing Desk (NDD) execution, rather than taking the opposite position of ... Find out the Top 10 of the absolute Best ECN - STP Forex Brokers 2020 (Non Dealing Desk) with tight spreads. Sign up now & Learn more Per esperienza, quando la gente cerca i migliori forex broker ECN STP, in sostanza sta cercando un broker Non Dealing Desk, senza però ben sapere quali siano le differenze tra ECN e STP. Con un broker forex ECN STP stai scegliendo un broker che non farà da controparte al tuo ordine, ma che semplicemente farà da tramite per trovare un’altra controparte per soddisfarlo. Die ultimative Anleitung um No Dealing Desk . kann Forex Broker bieten entweder Dealing Desk oder No Dealing Desk Ausführung Modelle. Broker einen Dealing Desk bietet agiert auch als Market Maker; sie ihre eigene Liquidität im Allgemeinen schaffen, das Gebot festlegen und sich fragen, Preis und die gegenüberliegende Seite eines Handels des Kunden nehmen. Los brokers de Forex Non Dealing Desk (NDD) ofrecen acceso directo al mercado interbancario ya que sirven de intermediarios entre los clientes y otros operadores. Un broker NDD no se convierte en la contraparte de sus clientes durante las transacciones de estos en el mercado. Directorio de brokers NDD online. No Dealing Desk brokers can either be STP or STP+ECN. What is an STP Broker? Some brokers claim that they are true ECN brokers, but in reality, they merely have a Straight Through Processing system. Forex brokers that have an STP system route the orders of their clients directly to their liquidity providers who have access to the interbank market. Dealing Desk brokers are in a conflict of interest as a dealing desk broker also buys and sells securities for its own account as well as on behalf of the customer. There is a risk of price manipulation with Dealing Desk brokers as they may profit from changing the traders bid or ask price on a forex trade.
HOW TO CHECK YOUR BROKER IS ECN AND NOT A HYBRID DEALING DESK?
In this video, I will be discussing how you can actually find out if your Forex broker is a pure STP/ECN Broker or if it's a Dealing Desk(market maker), or maybe a mix of both. Find out the shocking truth on Forex brokers! What is ECN? Dealing Desk Facts - Spikes, Spread Manipulation and other dirty tricks... Check out more good For... currency online trading stock trade foreign exchange traders cfd trading trade stocks stock trader online stock trading forex demo accounts forex trading uk ... 'No Dealing Desk' Brokers - What's In It For You? With Ricardo Evangelista, ActivTrades Choosing a Forex broker is a big decision, and the first choice you'll likely have to make is whether to go with a Dealing Desk broker or an ECN broker. They... Dealing Desk Facts - Spikes, Spread Manipulation and other dirty tricks... Check out more good Forex stuff on Secrets.BZ Private Club. Join for Free. no hidden catch :) Check out more good Forex ... Dealing Desk and No Dealing Desk is very impotent for Forex trader. You must know about Forex Broker Types and Merits and Demerits of Dealing Desk. You will learn from this part: What is Dealing ...