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  • #4,001
  • Jan 24, 2015 3:19pm Jan 24, 2015 3:19pm
Quoting verv
{quote} It's not a contradiction, you are just too stupid to know otherwise. Example: The risk threshold of broker x, a market maker, is the equivalent $10 million. This is set by the regulator (lets say the FCA) based on the amount of risk absorbing capital that company x holds to offset against losses. Broker X clients are positioned as follows on EURUSD: -66.6% of clients long = $30 million long on the eurusd -33.3% of clients short = $15 million short on the eurusd Net position of clients = $15 million net long. Broker X, which act as counterparty...
Gosh!!

You must be messing with me! I can't believe in what you just posted!!

You are messing up with the exposure argument. It tells me you don't have a clue.

The MM is the counter party in any trade. COUNTER PARTY....understand!!!!!!!!!!!!!!!

As a trade moves against their clients their exposure diminishes not increases.

The trades are offset internally so they just have to hedge using LPs when clients are massively on the right side of the market.

Anyways!!!! Believe in what you want to believe!!!!
So, you think you have rights? LOL
  • #4,002
  • Edited 11:52pm Jan 24, 2015 3:33pm | Edited 11:52pm
I'm gonna use your own figures to hopefully make you understand.

I shouldn't waste more time with you because I'm starting to think that you are here to confuse things....but anyways.

Quote
Broker X clients are positioned as follows on EURUSD:
-66.6% of clients long = $30 million long on the eurusd
-33.3% of clients short = $15 million short on the eurusd
Net position of clients = $15 million net long.

Using your figures and current market conditions (or any market conditions)

The MM exposure is NOT 15 millions because the losses held by the 66.6% long EUR/USD are the MM gains.

MM gains are added to their equities.

As the pair is sharply down after all offsets the MM internal database is showing clients massively in red.

The net loss of their clients is the net gain of the MM ( plus spread )

Therefore the 10M are no longer 10M, but 10M plus whatever losses their clients are holding or taking plus spread.

So the MM has its original 10M, plus losses after offsets, plus the spread, meaning they are legal...they are complying to regulations.

Their algorithms keep track of it and only trigger a hedge via LPs when clients orders are massively right, which means losses for the MM which is a very VERY rare event..
So, you think you have rights? LOL
  • #4,003
  • Jan 25, 2015 6:04am Jan 25, 2015 6:04am
Hi Guys,
I am considerig going for OANDA as broker. I have one question, is there anny difference between trading with the MT4 platform and the mobile one? I think there is, in terms of spreads at least. I am asking it because I have downloaded the the Mobile App, and drawing the EURUSD i dont see the same candles in both platforms. Maybe I am not using properly the OANDA mobile app. Please let me know.
Thanks!
  • #4,004
  • Jan 25, 2015 8:36am Jan 25, 2015 8:36am
Quoting Gonzalon
Hi Guys, I am considerig going for OANDA as broker. I have one question, is there anny difference between trading with the MT4 platform and the mobile one? I think there is, in terms of spreads at least. I am asking it because I have downloaded the the Mobile App, and drawing the EURUSD i dont see the same candles in both platforms. Maybe I am not using properly the OANDA mobile app. Please let me know. Thanks!
I find no difference at all with the spreads.The difference in candles would only be apparent on H4 and above due to the server time being different.
Where price is now, it has been before, and will be again.
  • #4,005
  • Jan 25, 2015 10:58am Jan 25, 2015 10:58am
Quoting ForexOracle
{quote} The MM is the counter party in any trade. COUNTER PARTY....understand!!!!!!!!!!!!!!!
No. MM isnt the counter party in any trade.
  • #4,006
  • Jan 25, 2015 11:41am Jan 25, 2015 11:41am
Quoting Jenx
{quote} I find no difference at all with the spreads.The difference in candles would only be apparent on H4 and above due to the server time being different.
Thanks for ur reply jenx. I thought there would be some differences since in Oanda web the advertise spreads from 1.2 pips in MT4, while they dont indicate that in the other platforms, weird.
  • #4,007
  • Jan 25, 2015 11:43am Jan 25, 2015 11:43am
Quoting Tim_isoara
{quote} No. MM isnt the counter party in any trade.
As far as I understand it, a MM simply guarantees to "make the market" i.e guarantees to buy or sell at a given price. They may or may not have to pass that on to the market depending on their own positions.This is why,as I understand it, you get less (or no) chance of a re-quote and much less slippage than with an ECN.
Where price is now, it has been before, and will be again.
  • #4,008
  • Jan 25, 2015 11:47am Jan 25, 2015 11:47am
Quoting Gonzalon
{quote} Thanks for ur reply jenx. I thought there would be some differences since in Oanda web the advertise spreads from 1.2 pips in MT4, while they dont indicate that in the other platforms, weird.
Oandas spreads being variable leave a lot to be desired if timing is critical to you but I've tried stacks of brokers over the years and they are head and shoulders above the rest in almost all areas. One thing that does piss me off is the 20€ withdrawal fee and if you make a second withdrawal within the month its 35€ !!
Where price is now, it has been before, and will be again.
  • #4,009
  • Jan 25, 2015 11:53am Jan 25, 2015 11:53am
Quoting Tim_isoara
{quote} No. MM isnt the counter party in any trade.
Yep....because you said so!!
So, you think you have rights? LOL
  • #4,010
  • Jan 25, 2015 12:00pm Jan 25, 2015 12:00pm
Quoting ForexOracle
{quote} Yep....because you said so!!
Just ask Oanda.
  • #4,011
  • Jan 25, 2015 12:29pm Jan 25, 2015 12:29pm
Quoting Jenx
{quote} Oandas spreads being variable leave a lot to be desired if timing is critical to you but I've tried stacks of brokers over the years and they are head and shoulders above the rest in almost all areas. One thing that does piss me off is the 20€ withdrawal fee and if you make a second withdrawal within the month its 35€ !!
Withdrawal with paypal is free.
And from paypal to your card is 2 euro.
  • #4,012
  • Jan 25, 2015 1:02pm Jan 25, 2015 1:02pm
Quoting ForexOracle
{quote} Yep....because you said so!!
Does OANDA trade against its clients?
While some firms may take on exposure in the market on the gamble that their clients are going to make losing trades, OANDA aggregates exposure and hedges it with our partner banks. We are likely one the most conservative firms in this area, preferring to profit from the spread rather than taking speculative positions that oppose our clients.
Some people erroneously believe that OANDA might benefit from a client's losses. On the contrary, because exposure is hedged, we would lose a corresponding amount to our partner banks. Furthermore, traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.


Yep.... because I said so!!
  • #4,013
  • Jan 25, 2015 1:06pm Jan 25, 2015 1:06pm
Quoting Tim_isoara
{quote} Does OANDA trade against its clients? While some firms may take on exposure in the market on the gamble that their clients are going to make losing trades, OANDA aggregates exposure and hedges it with our partner banks. We are likely one the most conservative firms in this area, preferring to profit from the spread rather than taking speculative positions that oppose our clients. Some people erroneously believe that OANDA might benefit from a client's losses. On the contrary, because exposure is hedged, we would lose a corresponding amount...
Not necessarily. It's possible for a broker to profit as if they hedge your position and you lose, say, $100, that $100 comes out of what you deposited. The brokerage gets to keep the $100 it made in the hedge trade and pays nothing in losses since that loss came directly from your pocket. Could that brokerage lose business over time if they can't get new signups? Definitely. But I'm willing to be it's a lot more profitable to trade against clients than to rake spreads. To be clear I'm not saying Oanda does this, just explaining my thoughts on your comment.
  • #4,014
  • Jan 25, 2015 1:07pm Jan 25, 2015 1:07pm
Still do not undestand why people want to trade with a broker that requires 2,000-4,000 to trade a standard lot, when you can put up $200 in margin offshore for the same size trade. Keep the other $1,800-$3,800 in YOUR BANK and transfer when/if needed. It can't be regualtion keeping you here. The NFA and CFTC do absolutely nothing to protect the retail trader. So why have 10x the money at risk!
  • #4,015
  • Jan 25, 2015 2:24pm Jan 25, 2015 2:24pm
Quoting Jenx
{quote} As far as I understand it, a MM simply guarantees to "make the market" i.e guarantees to buy or sell at a given price. They may or may not have to pass that on to the market depending on their own positions.This is why,as I understand it, you get less (or no) chance of a re-quote and much less slippage than with an ECN.
Yes. It is also the reason why DD brokers are often accused of trading against their clients. But imo if you find reliable DD broker, much more stable in these situations, as they offer you price which they can afford .
"I know one thing, that I know nothing." Sokrates
  • #4,016
  • Jan 25, 2015 3:47pm Jan 25, 2015 3:47pm
Quoting Tom_D_Trader
{quote} Yes. It is also the reason why DD brokers are often accused of trading against their clients. But imo if you find reliable DD broker, much more stable in these situations, as they offer you price which they can afford .
It's not that they are accused of it, it's a fact. If you go to Oanda website, under risk disclosure, it clearly states when you buy we are the seller, when you sell, we are the buyer.
  • #4,017
  • Jan 25, 2015 3:49pm Jan 25, 2015 3:49pm

  1. From Oanda's website:

    When you enter into an OTC Contract with OANDA, you will be entering into a privately negotiated contract with
    OANDA as principal. This means that OANDA acts as the seller when you buy and the buyer when you sell.

  • #4,018
  • Jan 25, 2015 3:50pm Jan 25, 2015 3:50pm
Quoting Tim_isoara
{quote} Does OANDA trade against its clients? While some firms may take on exposure in the market on the gamble that their clients are going to make losing trades, OANDA aggregates exposure and hedges it with our partner banks. We are likely one the most conservative firms in this area, preferring to profit from the spread rather than taking speculative positions that oppose our clients. Some people erroneously believe that OANDA might benefit from a client's losses. On the contrary, because exposure is hedged, we would lose a corresponding amount...
Can you please explain my above post, I must be missing something.
  • #4,019
  • Jan 25, 2015 3:55pm Jan 25, 2015 3:55pm
Quoting Profit Daily
From Oanda's website: When you enter into an OTC Contract with OANDA, you will be entering into a privately negotiated contract with OANDA as principal. This means that OANDA acts as the seller when you buy and the buyer when you sell.
Quoting Tom_D_Trader
Well my first account went bust on 2009, it was Oanda scalping account, but I credited the loss to my lack of knowledge of fundamental moves. Yes, I can recall they had some crazy spikes back then......Nevertheless, due to Oanda beeing DD broker, what you see is what you get.Yes, it is their price and can make it up, so can feck you over in microTF. Perhaps they do, I dont know, but for my style - mostly intraweek and quarter trades, find them suitable. They cant afford to make spikes on weekly chart,
See, we already had this issue here. Every broker can screw you over if he wants to. You are in wild ocean of OTC market. Most of brokers do that in fact and the most easy it is for offshore DD brokers. Thats why I told you to stay out. See, I somehow feel the main difference here is you trade overleveraged intraday moves and trying to find excuses blaming brokers. Perhaps am too sensitive sorry. Yes, they can steal, but much better is to be the only reliable regulated DD broker. I am conspirational theorist myself, but you are taking it too far.
T
"I know one thing, that I know nothing." Sokrates
  • #4,020
  • Jan 25, 2015 3:58pm Jan 25, 2015 3:58pm
Quoting Profit Daily
{quote} It's not that they are accused of it, it's a fact. If you go to Oanda website, under risk disclosure, it clearly states when you buy we are the seller, when you sell, we are the buyer.
Is OANDA a Market Maker?
OANDA is a market maker, not a dealing desk. The prices on our trading platforms are proprietary and we do not guarantee they will be the same as those offered by other brokers.
Does this mean OANDA is trading against me?
Does OANDA trade against its clients?
While some firms may take on exposure in the market on the gamble that their clients are going to make losing trades, OANDA aggregates exposure and hedges it with our partner banks. We are likely one the most conservative firms in this area, preferring to profit from the spread rather than taking speculative positions that oppose our clients.
Some people erroneously believe that OANDA might benefit from a client's losses. On the contrary, because exposure is hedged, we would lose a corresponding amount to our partner banks. Furthermore, traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.
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