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miniman · 12-01-2005, 13:05

OK. you make the call. Here are the choices straight from the mouths of the brokers themselves 1) graying out-I just talked to (wont mention name) about their fill policies on Non-farm payrolls
and some other exceptionally volatile releases. The gentleman I spoke with told me about a thing called "graying out." What happens, is that the banks that are the market makers in this market stop giving quotes to the brokers. They will either give quotes 500-600 pips away from the market or they will give no quotes at all, which leaves the brokers blind. The brokers are unable to make their fills without knowing where the market is, and the banks, which are big enough to temporarily influence the market, are able to manipulate it in their favor. (Whether this is actually occurring or not is a matter of speculation, not fact,
but the big banks are capable of doing it - i.e. BOJ interventions). In addition, there are so many orders coming in at that time that I was told that even with an additional 100 servers, they couldn't handle the volume involved in non-farm payrolls. Without quotes from the banks, they have no buyers (or sellers) to match the orders to. 2)stophunt-> when a company (we won't use any names here) decides that it sure could make alot of money by hiring professional traders to actively trade in-house because of the avantage it has by being able to control the price feed given to its customers. By knowing where large amounts of stops and limits are placed one can see how easy it would be to take avantage of your average trader by simply manipulating the price to take out these stops. Whether this is done by trading huge amounts to force the price to where you want it or by unethically "pushing a button" to make a momentary price
change, it doesn't really matter because it is all LEGAL! This is the
huge "dirty" secret of the FX brokerage industry. If Tony T is right and the newbies are segregated, my vote is 2-stophunt (it did only happen on one platform.

12-01-2005, 13:05	#13
miniman level 1 Join Date: May 2004 Posts: 17 Downloads: 0 Uploads: 0 Rep Power: 0	stophunt vs. graying out OK. you make the call. Here are the choices straight from the mouths of the brokers themselves 1) graying out-I just talked to (wont mention name) about their fill policies on Non-farm payrolls and some other exceptionally volatile releases. The gentleman I spoke with told me about a thing called "graying out." What happens, is that the banks that are the market makers in this market stop giving quotes to the brokers. They will either give quotes 500-600 pips away from the market or they will give no quotes at all, which leaves the brokers blind. The brokers are unable to make their fills without knowing where the market is, and the banks, which are big enough to temporarily influence the market, are able to manipulate it in their favor. (Whether this is actually occurring or not is a matter of speculation, not fact, but the big banks are capable of doing it - i.e. BOJ interventions). In addition, there are so many orders coming in at that time that I was told that even with an additional 100 servers, they couldn't handle the volume involved in non-farm payrolls. Without quotes from the banks, they have no buyers (or sellers) to match the orders to. 2)stophunt-> when a company (we won't use any names here) decides that it sure could make alot of money by hiring professional traders to actively trade in-house because of the avantage it has by being able to control the price feed given to its customers. By knowing where large amounts of stops and limits are placed one can see how easy it would be to take avantage of your average trader by simply manipulating the price to take out these stops. Whether this is done by trading huge amounts to force the price to where you want it or by unethically "pushing a button" to make a momentary price change, it doesn't really matter because it is all LEGAL! This is the huge "dirty" secret of the FX brokerage industry. If Tony T is right and the newbies are segregated, my vote is 2-stophunt (it did only happen on one platform.