Es ist kein Geheimnis, dass jeder Mensch in seinem Leben zum Einkommen strebt, dass den größten Teil seines Bedarfs decken kann. Ein gutes Einkommen garantiert seinen Wohlstand und Stabilität.
In der Zeit der Informationstechnologien und des allgemeinen Internetzugangs, haben Millionen von Menschen unbegrenzte Gelegenheiten, ihr Einkommen und Eigenkapital dank dem Handel auf dem Währungsgefälle im Rahmen eines internationalen Forex-Devisenmarktes .
In den 80-er und sogar 90er Jahren wurden die "Ferngeschäfte" auf den Börsen mithilfe der Telefonaten durchgeführt. Jetzt können die Trader den Handel über Internet durchführen und viel Geld verdienen, ohne ihr gemütliches Sofa zu verlassen.
Forex ist ein internationaler Devisenmarkt, der in der Form einer globalen Börse organisiert wurde,wo nicht nur Banken, Korporationen und Brokergesellschaften die Devisen kaufen und verkaufen können, sondern auch jeder, der es tun möchte. Sie Konnen z.B. US Dollar oder Euro zu einem niedrigeren Preis kaufen und dann teurer verkaufen
Jeder Trader installiert an seinem Computer ein spezielles Terminalprogramm, das ihn mit dem Broker-Server verbindet, durch den er handeln will.
Opening a live account is usually followed by a question: "How to make money on Forex being ignorant of ramifications related to speculation in currency fluctuations?".
If you feel the euro rate is falling, you just buy the greenback paired with the euro. Trading based on the inner voice may be profitable enough, but it provides no prospects of developing into a professional.
Proficient speculators employ in their work diverse tools, from news released by mass media (the foundation of fundamental analysis) to a wide range of indicators and expert advisors. Every trader is perfectly aware that he may well get a part of $4 trillion he faces daily. In order to apprehend the mechanism of currency trading, one does not need to hold a degree in Financial Analysis. A tad of patience and an ability to ratiocinate would be ample!
For now, the most user-friendly and popular trading platform is MetaTrader. Since it has a broad functionality, a novice might find it complicated, but appearances are deceptive. This software is intuitive, reliable and easy to use. What is more, it is available free of charge.
You only need several options of the platform. As modern technologies are constantly updated, software has to react to these changes.
MetaTrader enables its users to trade on Forex in both manual and automated modes. Many advance market players build their strategies on the following principle: sell on one signal, buy on another. This mechanical action can be automated and conducted by a robot.
For instance, a trader has an efficient strategy, but he wants to automate it. Then, he asks a programmer to write a program that would execute standard actions required by the trading strategy. Most of the speculators create such programs themselves. Such programs are called expert advisors (EAs) or automated trading systems. EAs can trade on their own leaving a trader unengaged.
Each and every person can trade on Forex online without prejudice to a full-time job. Forex is the only market to be open round the clock, except for weekends and public holidays. Die Effektivität der Analyse und die Prognostizierung der Veränderungen auf dem Forex-Markt ist so, dass indem Sie diese oder jede Trends auf dem Forex-Markt du die wirtschaftliche Situation in der Welt analysieren, können Sie die Notierungsveränderungen vorahnen und das Geldung in die richtige lenken.Die absolute Mobilität des Forex-Devisenmarktes und vollständige innere Trading-Operationskontrolle. Sie können im Internet verdienen, indem Sie nur 1 order 1000 US-Dollar haben. Außerdem erfolgen die Deals augenblicklich. Sie können die Deals für eine Zeitlange stoppen oder jederzeit das Konto schließen, und auch den Handel überall verwalten, indem Sie den Zugang zum Internet von Ihrem PC, Laptop oder Handy benutzen.
It was founded in 2009 and registered in the British Virgin Islands. One of the main advantages of the company is that clients' money is kept in the Royal Bank of Scotland RBS Swiss branch. The safety of funds and trust in the broker are the main priorities of Forex-Market.
Traders working with the Forex-Market brokerage company have the opportunity to choose an account for trading: Standard and Expert or Invest. Each of these accounts has unique conditions that help in trading, giving the opportunity to get the most profit.
Standard account - allow traders to enter the market with minimal amounts and have a simple execution mode. Opportunity to trade classic - Instant Execution. On this account, trading is available on 48 currency pairs, CFD's, Futures.
Expert account - focused on more experienced traders who will certainly appreciate the unique execution of orders - Market Execution: high speed and interbank liquidity.
Invest account - trust management, favorable investment conditions, high interest rates, professional managers, transparency and reliability of operations.
Forex-Market employs qualified employees who will provide professional technical support around the clock.
Structure and regulatory organizations of the Forex-Market broker
Forex-Market Company was founded in 2009 and registered in the British Virgin Islands.
Website languages: English and Russian.
Support languages English, Russian, Kazakh.
Brand structure and licenses
The Forex-Market broker received a certificate of conformity from the Federal Financial Markets Service, confirming the quality of the brokerage services provided and the reliability of the company.
Branches of Forex-Market in the world
International offices and branches of the Forex-Market company are located in three countries -. Russian Federation: , Novokuznetsk Krasnoyarsk
2. The brokerage company provides its clients with a full range of services, including analytical materials necessary for successful trading - .
3. At the same time, the broker has a number of shortcomings noted by traders of the Masterforex-V Trading Academy, including not quite correct operation of trading terminals, certain problems arise during registration, etc. These and other problems explain such a low position of the broker in the Masterforex-V rating.
According to the analysts of the magazine for traders and investors "Market Leader", the Forex-Market brokerage company is in the TOP-30 most popular Forex brokers in Russia and other CIS countries, occupying, as of September 17, 2013, the twenty-seventh position in the popularity rating of market companies forex, compiled on the basis of search queries in the Yandex.
In September, in the ranking of the TOP-30 most popular brokers of Runet, Forex-Market takes twenty-seventh place in the "Market Leader" chart, yielding positions to such brokerage companies as, and ahead of such brokerage companies as, Larson & Holz IT Ltd, as well as other Forex market brokers . The number of requests in the Yandex search engine for the Forex-Market broker in August, although minimal, decreased.
The positive aspects of this broker are:
— Considerable attention is paid to providing an opportunity for novice traders to trade on micro accounts -.
- Forex-Market brokerage company is ready to do everything necessary to make Forex quotes a source of profit for traders.
Forex-Market in the ratings of forex brokers
According to the popularity rating in the Yandex.News aggregator, compiled by the "Market Leader", Forex-Market is in the TOP-35 of citations among all Forex brokers in the CIS, the leader of which was ForexClub in August. Forex-Market ranks thirty-fourth.
Traders note the relative stability of the broker, a fairly complete range of services in the forex market, as well as a high level of customer service, thanks to which this broker is regularly included in at least the TOP-35 leading brokers in the forex market, compiled by analysts from the Market Leader magazine. : 
In August, the Forex-Market brokerage company allowed some decline in terms of recognition in the Internet media of the Yandex.News aggregator, however, the broker is characterized by a constant presence in the "Market Leader" chart, provided by a wide range of financial products offered to customers, in-demand services provided by the Forex-Market broker.
Forex-Market broker PR dynamics can be tracked at wordstat.yandex.ru (Yandex)
Along with the Forex-Market query, Yandex users are looking for:
Forex market 568 search queries per month in Yandex;
. forex market hours 114 search queries per month in Yandex;
. forex market com 81 search queries per month in Yandex.
. forex market hours com 58 search queries per month in Yandex;
. forex market reviews 47 search queries per month in Yandex;
. forex market hours monitor 19 search queries per month in Yandex;
. forex capital markets 16 search queries per month in Yandex;
. forex market gates ru 6 search queries per month in Yandex.
Popularity among forex traders of the Forex-Market company in social networks of the CIS
According to the data available to the "Market Leader", the brokerage company Forex-Market is included in the TOP-20 brokerage companies and takes the fourteenth place operating in the CIS in terms of popularity among users of social networks .ru and VKontakte.
As it is clear from the table compiled by the analysts of the sections "News of the social network Odnoklassniki" and "News of the social network VKontakte" of the magazine for traders and investors "Market Leader", brokerage companies providing services in the Forex financial market, for promotion in the field of PR, give their preference mainly to VKontakte , in which almost all companies have their own support groups.
The leader in the nomination of the number of fans in social networks is the brokerage company Forex Trend (Forex Trend), which has 38,485 subscribers on VKontakte and Odnoklassniki (146 subscribers on odnoklassniki.ru and 38,339 subscribers on VKontakte). The Forex-Market brokerage company occupies the fourteenth place in the rating, currently having a significant support base - only 4,171 subscribers, 450 of which fall on the social network Odnoklassniki.ru, which is very popular in the CIS countries, and 3,721 on the social network VKontakte, which is also very popular.
Before studying the material relating to direct trading on the stock exchange, it is necessary to study the future field of activity, to decide what Forex is in general and on what basic principles it functions.
Forex (Forex - FOReign EXchange Market)- This is an international foreign exchange market, the goods on which are the currencies of various countries. There are sellers and buyers on the exchange, and transactions are opened in a continuous stream.
There is no fixed platform for currency trading, as for commodity or. The currency market operates around the clock from 00.00 Monday to 24.00 Friday. The market is closed on weekends. There are several key currency trading centers (modern exchanges) in the world, therefore, the trading day is conditionally divided into 3 sessions:
- Asian
- European
- American
Forex what is it?
How did the Forex market appear?
Initially, platforms for performing foreign exchange transactions (in fact, the purchase of one currency for another) were intended for state and large private banks that perform various operations in foreign currencies. But soon the number of market participants began to grow actively with the arrival of those who are now commonly called traders. In those days, they were "speculators", but, as now, they profit from the difference, the current market value of the selected instrument.
In theory, everything is simple, an asset is bought at a low price and sold at a higher one, or it is first sold at an overpriced price and then bought off at a lower one. However, in order to learn how to predict even minimal rate movements, it is not enough to read a few books or watch a dozen videos about successful traders.
Forex trading is simple - fund an account and open a trade, but to understand how to trade Forex profitably, you need to take into account many factors. Let's analyze them in more detail.
What is better forex or binary options?
Definitely Forex and there are several proofs of this:
- There is no real multi-millionaire in the world who made a fortune only on binary options;
- In Forex trading, you can exit a transaction at any time; in BO, after entering the market, all you have to do is wait;
- The BO broker is always in the black, because with a loss, the trader loses 100% of the amount entered into the transaction, and with a win, he receives from 40 to 95%;
- 98% of binary options brokers do not have a license or get it from dubious offshore registrars.
These are just the most popular arguments in favor of traditional Forex. In the process of studying the question of how to play Forex, you will find a lot of arguments that it is better not to mess with binary options, and if you want originality in your work, look for yourself in the stock and commodity markets.
Choosing a Reliable Forex Broker
A reliable partner is the key to the successful implementation of the plan, therefore the question of his choice should be approached above all else. The field of Forex trading and related areas are filled with unscrupulous companies and outright scammers, which means that a newcomer to trading needs to follow the criteria for evaluating the reliability of a broker:
- Age is the most important factor in determining the reliability of a financial company. On the Internet, any information spreads very quickly, which means that any error or problem with a brokerage company becomes public in a matter of days.
- Licensing - without it, the company has no right to conduct business in principle. It is issued by international regulators (Australian ASIC, Belize IFSC, UK IFC and others). Each regulator places in the relevant section information about the companies for which documents are issued and everyone can get this information. Check the availability of a license from the companies selected at the first step;
- Trading conditions - since trading is a lengthy process, it is worth studying the conditions under which the broker operates. The secrets of working on Forex lie not only in the trading system, but also in minimizing commissions and payments, for example, spread, which bite off a small part on each transaction. However, when recalculating the cost of one spread point for several hundreds or thousands of transactions, it turns out that the company has earned a lot from you. Look for the most favorable trading conditions. Make a comparison;
- Education - a person who only knows what Forex is, who is interested in how to work on Forex for a beginner, needs a competent explanation of the main points. Each serious broker offers not only analytics, but also training materials selected for different levels of training, real-time seminars and other things that will help a new client learn how to play the stock exchange. The important thing here is that it is not necessary to trade where the training is better, the materials are mostly free and you can use them immediately after registering with the company and try to make money on Forex without investing on a demo account.
- Payment systems - their range is an excellent indicator of reliability. Before you start earning, a market participant must invest. The main electronic payment systems, such as WebMoney, check the reliability of the companies with which they do business, up to licensing. The more popular payment systems are represented, the more reliable the future partner is;
- Reviews - there are many forums and thematic resources on the net with the topic "how to start trading on Forex". At each forum, players with experience express their opinion and share their experience about cooperation with certain companies. Here, representatives of companies answer questions, settle problems and misunderstandings. By studying such forums and projects, form your own opinion about the brokers remaining after the first step, ask questions to those who work with them and company representatives in order to finally decide.
When a potential partner has passed all the tests and checks and it's time to replenish - limit yourself to a trial deposit with a minimum amount. There is much to learn and it will be a great disappointment if the money runs out in the middle of the way.
Many who get acquainted with the Forex market are wondering if it is possible to make money on Forex without investments? The answer is - you can, but you won’t get serious results quickly.
Some brokers offer no deposit bonuses for new clients of the company. In fact, they give real money for him to learn Forex in real trading. The amounts of such bonuses are small, but quite suitable for cent accounts. This money is not available for withdrawal, but all profits from them remain.
Currency pairs
There are many of them, and for each you can make a profit. But to understand how to make money on Forex, you need to choose one pair. In the future, expanding the range of traded currency pairs or metals is at the discretion of the trader, at first it is better to concentrate on a specific pair, for example, EUR/USD.
All information received about the Forex market in the process of studying should relate to the selected instrument, at least indirectly. There is no need to get into the wilds of general analytics or keep track of news that are not related to the selected pair - this will be an extra burden and will make the process unclear.
How to learn to trade on Forex?
At first glance, the answer seems obvious - a demo account with no options. However, this decision is wrong. Many books and courses on "how to make money on Forex from scratch" consider only the technical side of trading. Find a working trading system, follow its signals and bring the number of profitable trades to a mark higher than losing ones and you will be happy.
If we consider the question - how to play Forex for a beginner, the key point should be psychology, not mechanics. A trading robot can simply follow a ready-made system, but only a trained person can penetrate the psychology of the crowd, overcome their own barriers and fears, and emerge victorious from a trade.
The demo account offers an exciting game on the stock exchange for a beginner. The broker advises "trade as you like, lose and earn - these are candy wrappers." And this advice is far from the best. Agree, when we study, besides the positive, the negative result is also important. The analysis of wins and losses leads to the identification of errors, their correction and / or avoidance in the future, and hence the improvement of trading.
On a demo account, there is no risk of losing real money, however, there is no bitterness from the loss of money earned by oneself or the joy of increasing it. It is this psychological aspect that tips the scales in favor of starting trading with a cent or minimum real account before a demo. The learning process will become much more complete, and each profit will slightly replenish the account with small but real money.
Switching to a classic account
The cent account has no special restrictions and you can always trade on it; with experience, the player understands that it is required to open a standard trading account. You need to follow a few rules in order not to be disappointed in trading:
- Ready trading system. Borrowed from others or developed independently.
- Own readiness, primarily psychological, to work with a much larger amount than on a cent account. Therefore, before starting to play Forex, a cent was chosen, not a demo;
- Money freedom. The entire amount, up to the last cent, that will be deposited into the trading account may be lost. If a trader is not ready to lose money, he will not be able to soberly assess the risk, which will lead to defeat.
- Moneymandzhment. In the question of how to trade Forex correctly, this thesis is more important than others, and the last place is deliberately reserved for it in order to emphasize its importance against the background of what has already been read.
The concept of proper risk allocation is extremely important for every trader. Trading discipline (observance of the signals of the trading system) ensures the predominance of profits over losses. It is risk management that minimizes losses and allows profits to grow.
The traditional risk per trade is 2% of the deposit. The maximum amount that can be lost as a result of a Stop Loss order is 2%.
Profit orders limit the growth of the deposit, but they are a requirement of the trading system. It is not uncommon for the price to move further after passing the established Take Profit order. To extract the maximum profit, there is a method when the transaction volume is divided into two orders. The first one closes on profit, and the second one includes a trailing stop when the price breaks through the order and moves until the first serious rollback.
A full-fledged account should advantageously combine the advantages of trading on the chosen instrument and the chosen trading strategy. If the TS implies opening deals for several days, the conditions should be with a minimum swap (broker's commission for transferring a position to the next day). When trading intraday, the spread should be minimal. These are the unspoken secrets of the markets, not described in books.
Break even
It becomes a turning point for the trader. Stabilization of trading, when the final recalculation of the deposit at the end of the month shows that there is a profit or managed to reach zero, is an indicator that the participant has reached one of the peaks and is ready to move on. Now, the trader himself can tell stories on how to trade Forex for a beginner. However, the purpose of Forex trading is to receive a permanent income, which means that the deposit should be expanded by reinvesting the profits. Reinvestment is the investment of funds received in the form of profit from existing assets in the same or another asset.
In our case, there are three options for the competent disposal of the resulting profit:
- Full reinvestment. An excellent solution for the fastest possible acceleration of the deposit to a comfortable level.
- Partial reinvestment. An excellent bookmark for the future, when 50% of profits are reinvested, and 50% are withdrawn from the system and stored in safe currency. This is what far-sighted traders do, who understand how the market works. Force majeure situations can lead to the loss of a large share of the deposit due to the inability to cancel the transaction;
- Full withdrawal. This decision is made to cover current urgent expenses or when the amount on the deposit reaches the ceiling (this is such a concept when a trader is afraid to dispose of a larger amount and, therefore, makes mistakes when analyzing the market and opening transactions).
We have analyzed what Forex is and how to make money on Forex from scratch. In one article or in a series of books it is impossible to give comprehensive advice on Forex, where to start, how to start, how to avoid problems. Sign up for a free training course, our traders will clearly explain how to make money on Forex from scratch.
Asset prices change every day - this gives you the opportunity to buy and sell stocks, gold, currencies, indices and energy resources for your own benefit. You can earn in two directions: on the growth of their value and on the fall.
The rules are the same for everyone: buy low, sell high. Or vice versa, sell high and buy low. For example, to capitalize on rising stock prices, you buy them, say, at $17 per share, and after a while, when their price reaches $30 per share, you sell them. The difference between the buy price and the sell price is your profit.
Learn how to earn without leaving home
A demo account is a unique opportunity to learn how to make money in the financial markets without risk and your own investments: $5,000 of virtual funds have already been credited to your account for training trading. Register a demo account now and get a link to a free online seminar - learn from the comfort of your home!
Minimum investment
To start trading, it is not necessary to have a large starting capital. Anyone can use leverage and trade large amounts, even if they actually do not have them on hand. For example, you can buy $20,000 worth of stock with just $200 of investment.
Where to begin
About 75 million people trade in financial markets. Their experience shows that it is possible to increase your capital from 0 to 8000%. The main thing is to approach the issue systematically.
First you need a trading platform - this is a connection with the market. It allows:
- get the necessary knowledge about current asset prices (quotes);
- conclude transactions for the purchase and sale of assets via the Internet;
- use useful analytical services to build accurate forecasts.
The platform gives access to all trading instruments from one interface. And the basic rule - buy cheaper and sell more expensive - applies to any of them.
When starting to trade on the foreign exchange market, usually few people think about how exactly it works, who and to whom supplies quotes, sells currency, and so on. Traders think more about trading conditions, the quality of order execution, the speed of withdrawal of funds, etc. But if a speculator incurs systematic losses, then bad thoughts begin to creep into his head regarding the fact that some mysterious Forex market maker, he is a puppet, monitors his feet and specifically puts spokes in the wheels, not allowing him to earn.
Against the backdrop of losses, in most cases would-be traders begin to write reviews on forums and websites that Forex brokers or market makers move quotes, manipulating the rate in order to rob honest small speculators. Oddly enough, but such opinions are sometimes voiced by very serious traders. To understand how objective the statements about such a "global conspiracy" are, one should know something about those who are behind the scenes of the financial market.
What is a market maker
To begin with, each trader must get acquainted with the market mechanism, as well as with the goals pursued by individual participants in it. This will help to realize their place in the system, which will give certain advantages, since the activities of each participant are accompanied by the presence of their own strengths and weaknesses. Then, next time giving an order to buy or sell a currency, the trader will clearly understand what and when can happen, at what price the order will be executed, and why sometimes there are significant differences between the current quotes and those at which the transaction will be opened.
Since the advent of stock exchanges and until today, when Forex gained popularity, market makers have been and are called financial structures that guarantee the liquidity of financial assets and act as counterparties for transactions, forcing the glass of stock with limit orders. Forex exchange market makers include commercial banking institutions, brokers, hedge funds, etc. If translated from English market maker, then in Russian it will sound like the one who makes the market, that is, this is a key participant, thanks to which they can generally functioning of market mechanisms.
Of course, the Forex currency market is decentralized, but still, the participants in the trading are closely interconnected. Small private traders have to work with the help of brokerage companies acting as intermediaries. Those, in turn, are forced to cooperate with Forex market makers - the largest banks and other financial organizations.
Approximately the relationship of individual small and large traders, serious investors and speculators, large banks and brokers can be seen in the following diagram.
There are usually many Forex market makers on the trading floors who pursue their own goals and compete with each other, helping to reduce the spread, which is very good for small participants. The responsibilities of a market maker include providing liquidity, that is, they are required to act as counterparties to transactions even when no one has the desire to buy / sell on the market. That is, they actually form the price, supporting it when the market falls, and stopping the rise if the quotes suddenly rushed up.
Among Forex market makers there are especially large ones that control more than half of the money turnover. Considering that trillions of dollars are traded on the foreign exchange market per day, it is approximately possible to imagine the scale of these participants, among which are:
- Citybank is the largest Forex market maker based in the USA.
- Deutsche Bank - not far behind the German bank.
- Royal Bank of Scotland Group (RBS) from Great Britain confidently holds bronze.
- Barclays, also from the UK, is slightly inferior to RBS.
- UBS from Switzerland closes the top five.
Of the smaller financial sharks, there are: Morgan Stanley, Bank of America and JP Morgan. These are American banks that actively influence, first of all, trading in the dollar, New York Stock Exchange indices, etc. If we take the Asian region, then Mizuho Bank and Standard Chartered Bank have a great influence there. When trading pairs with the Russian ruble and MICEX financial assets, UniCredit and Rosbank must be taken into account.
Such monsters trade directly at the interbank level, where the size of a standard order is 5 million USD! Even many banks do not allow themselves to move such capital, so they join forces when the need arises to acquire a contract. To do this, there are so-called pools, and applications in them are reduced by prime brokers - large banks that have direct access to the interbank level.
For small market participants, prime brokers themselves act as Forex market makers. They enter into agreements with ordinary brokers, which are guaranteed liquidity and acceptance of orders from 10 thousand USD.
A broker that makes a profit from a spread markup (markup), as well as from various commissions, through prime brokers, provides small private traders with access to the interbank market. With such a scheme, the broker is satisfied, earning on clients and risking nothing, and the traders themselves are also happy, because with their insignificant deposits for Forex market makers, they get access to interbank liquidity.
It is easy to see that this scheme does not imply price manipulations from Forex market makers, and this is true! Their main task is to prevent chaos and panic by containing the price and guaranteeing liquidity. Therefore, to assume that they are hunting for someone's pennies is simply ridiculous!
Brokers work schemes
Now it is worth considering how the brokers themselves work, since not all of them bring transactions to the Forex market makers or do this not in every case.
Some brokers receive quotes from information agencies, but do not send client orders to the interbank market. These are the so-called kitchens or dealing centers (DC), which make a profit if the client suffers a loss.
Other brokers themselves represent a pool, accumulating transactions of traders in one direction and then bringing them to the interbank market. Such a position overlapping system is called matching. Here the broker itself does not influence the development of events, since the reduction of applications and their sending occurs automatically.
For example, Forex broker Exness acts as a small Forex market maker and at the same time a prime broker. The company directly offers trading services for individuals and, in addition, accepts orders from other brokers, providing them with execution in the interbank foreign exchange market.
The picture above shows the principle of operation of such a structure. It is easy to see that the amount of transactions for 112 lots received by Exness did not fall on the interbank market, since there were counterparties for them within the system. For example, trader Sasha from Russia wanted to buy 1 lot of EUR/USD, and a speculator from China at the same time wanted to sell 1 lot of EUR/USD. So in this case, Exness acted as a market maker and matched 2 orders in the opposite direction.
At the same time, another 122 lots did not find their counterparties within the system, so Exness brought them to the interbank level, where major market makers acted as counterparties. That is, with such a system, large market participants cannot even know whose orders they are executing, so it is foolish to assume that, for example, City Bank with a billion turnover, will seek to calculate the position of trader Vasya for 10 thousand dollars with a leverage of 1:100 to move the price, spending hundreds of millions of dollars on it, and hit his stop.
The inefficiencies of big capital
As part of their main policy, large Forex market makers are forced to carry out currency exchange transactions. But in this case, they always enter with limit orders and take a long time to gain a position in the flat. This is very important to understand. A large participant will never buy or sell on the market, as its volumes will cause wild slippage and the average price will not be acceptable.
So that there are no such impulses or takeaways, there are market makers. Therefore, when they themselves need to buy / sell, they act exclusively with pending orders, which they often also notify other participants themselves.
Therefore, even with the help of a regular chart, it is not difficult to notice situations when a major player is gaining a position. He cannot act without creating a tight flat with large trading volumes, so he always gives himself away. This is the key inefficiency of large capital, which is actively used by small private traders who understand how market makers work in the Forex market.
What strategies do not like serious players
Since traders working from home trade in small volumes, it is not difficult for them to instantly enter the market and exit the position with minimal slippage. In this regard, some of them use this advantage, earning on the inefficiency of Forex market makers.
The latter are forced to struggle with strategies that are undesirable for them. The list of such systems looks like this:
- HFT trading is high-frequency trading with the help of Expert Advisors, which creates the so-called toxic order flow. Such robots create many positions on all sides, forming castles and earning 1-5 points of net profit.
- Arbitrage strategies based on the fact that some brokers receive quotes with a slight delay.
- News trading.
- Provocation of imbalance by trading large volumes.
Forex market makers actively fight against such trading approaches, using their own methods and attracting brokers to find unscrupulous traders. Therefore, it will not be possible to earn money for a long time using one of the above approaches.
Sooner or later, the broker will start putting spokes in the wheels or the Forex market maker will stop providing liquidity. True, if you work through ECN, then it is not easy for a large participant to identify a specific trader, but in this case, the brokerage company, acting on guard of the interests of liquidity providers, may, on its own initiative, stop servicing the trading account.
Results of the review of the activities of major participants
If a trader trades with hands, then he will never cross the road of Forex market makers. Therefore, in this case, you can work completely calmly and not worry about anything, since large players will not specifically hunt for penny stops. Moreover, understanding how a large participant works, it is not difficult to understand how to follow the market makers in Forex.
