Hello guys i'm new to this forum as you can probably tell from looking at the upper right corner, but I have a few months of trading experience. Until this point I have never really given much thought to how the retail forex market operates. I figure this forum would be a good place to start learning, since there are so many experienced traders here. So I have two questions:
1. Is it true that when I buy/sell a currency pair on a retail broker no buying/selling transactions actually take place and that all i'm doing is essentially betting on a derivative (i.e. : long/short)?
2. Would several hundred retail traders all chasing the same entry and exit prices impact the market enough that it would severely compromise a trading system/methodology?
The reason why I'm asking the 2nd question is because of a post a relatively respected member on this forum made. Here's the link: http://www.forexfactory.com/showthre...32#post5916732
I appreciate all helpful posts, thanks guys .
1. Is it true that when I buy/sell a currency pair on a retail broker no buying/selling transactions actually take place and that all i'm doing is essentially betting on a derivative (i.e. : long/short)?
2. Would several hundred retail traders all chasing the same entry and exit prices impact the market enough that it would severely compromise a trading system/methodology?
The reason why I'm asking the 2nd question is because of a post a relatively respected member on this forum made. Here's the link: http://www.forexfactory.com/showthre...32#post5916732
I appreciate all helpful posts, thanks guys .