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Old 23-10-2006, 13:46   #9
peteuk
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Re: FOREX.... is it real trade ... or just Big Game ??? need help

Quote:
Originally Posted by JR97
Retail forex is a game. The new casino of the 21st century. People who think otherwise are suckers. Especially "news" traders. Doesn't mean you can't win the game. Just don't kid yourself that youj're a market trader.


I see, so just explain to me what happens to that 100 lot trade placed right on NFP release, are you saying the broker takes the other side and doesn't hedge any of it to cover his risk??? Why the delay in filling it then? Why the requote? Does his business model include taking the risk of paying out to the tune of 100k if price moves 100 pips in the clients favour? Now multiply that risk by the number of clients who trade data like that profitably, the marketmaker would go broke double quick time!

Marketmakers only hold positions they are comfortable with, the rest gets hedged in the "real world", part of which may be your trade.
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