Quote:
Originally posted by Rendist
Practical-1
Market makers will most likely hedge their postions by doing the exact opposite of what you do in the interbank markets. If you lose 15 pips the broker will take that to pay for their hedge, the only profit that they will make is the spread.
activefxtrader
As brokers profit from the spread I believe they would much rather have winning traders as the more money going through their hands equals the more they profit.
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I think, they are not offsetting positions (our trades) at interbank until the positions become really dangerous for their side or still it is an unknown phenomena.
Also, PittsburghFX said that they hate scalp traders, I dont know what he is actually think as a scalping, but I understand scalping as not only at news conditions (NFP, etc.), but ultra-short term trading as well less than 15 min trading. If this argument is true, your hedge explanation may be wrong. Or same are true which means, brokers also use hedging against your position and only profit from spreads. But my instincts tell me the truth --- They love chronic losers especially clients (traders) less than 10 K accounts (standard or mini-accounts).