Forex brokers trade against you


The purpose being to facilitate client's business and offer the best possible spreads - see our blog on forex brokers trade against you dealing direct with the market maker is forex brokers trade against you best option for trading FX - but some of our broker competitors have propagated the idea that market makers 'trade against you'. Don't have an account? The difficulty there is that, if they are acting exclusively as a broker and taking no risk, they need to pass the risk directly on to someone who will i. MahiFX does not provide investment advice or recommendations, and no material on this site should be construed as such.

The market maker is then paid three minutes later at 21 on a passive order. You could lose some or all of your deposited funds. It isn't to trade 'against' their clients. Client one buys back his short, earning two pips.

So the client is short and the market maker long at The difficulty there is that, if they are acting exclusively as a broker and taking no risk, they need to pass the risk directly on to someone who will i. Surely the market maker is trading against client one?

So the client is short and the market maker long at And so we come to the issue of horizon. Leveraged trading is high risk and not suitable for all.

Surely the market maker is trading against client one? It isn't to trade 'against' their clients. You could lose some or all of your deposited funds. But he is not married to it.

If the market maker takes client one's trade into his book, there is now a window in which another client may show up and buy on the other side of the spread. So the market maker and client can in fact have a symbiotic relationship, and the market maker can facilitate the clients ability to express his trading ideas forex brokers trade against you the layers of costs of any of the alternatives. But then he cannot profitably show the market rate - buying from his client at the market rate and then selling at the same rate doesn't create a forex brokers trade against you business, one that can continue to add value to its clients.

Surely the market maker is trading against client one? And so we come to the issue of horizon. Differing horizons - or holding periods - is what makes the relationship between market makers and their clients work, and gives the lie to the idea of trading against clients.