A forex book I read says trading with general methods in forex will finally create a disaster for us since market makers will bankrupt us at the end. How do you evaluate this statement.
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DislikedA forex book I read says trading with general methods in forex will finally create a disaster for us since market makers will bankrupt us at the end. How do you evaluate this statement.Ignored
DislikedA forex book I read says trading with general methods in forex will finally create a disaster for us since market makers will bankrupt us at the end. How do you evaluate this statement.Ignored
DislikedA market maker is simply someone who will buy or sell at a particular price. By a stricter definition they would be somebody capable of moving the market, to some extent.
Most banks could be said to be market makers because they set commercial exchange rates and take commissions . They are also futures market makers so that exporters and importers can hedge their prices.
They are not out to get the retail trader like us. We are relatively worthless anyway.
I don't agree with Alan Greenspan because although banks and governments are the...Ignored
DislikedA forex book I read says trading with general methods in forex will finally create a disaster for us since market makers will bankrupt us at the end. How do you evaluate this statement.Ignored
QuoteDislikedMarket makers get paid to provide liquidity. They clear buy and sell orders and take the bid/ask spread for themselves. In a very liquid market, the spread is extremely small. In a more exotic market it will be larger.
My guess is that the book is referring to the fact that if you start with a small amount of capital and trade frequently, eventually a significant portion of your money will end up getting shaved into spreads or commissions.
It also seems to me that a lot of brokers allow naive traders to employ so much leverage that their positions...