Thread: The Weird and Wonderful World of Forex

The Weird and Wonderful World of Forex Use a dealing desk forex broker and at some stage you’ll probably start to notice a strange pattern emerging. Stuff that just doesn’t make any sense at all, repeated over and over again till it becomes more or less the accepted norm.

This is what we mean by the weird and wonderful world of forex. Also known as “stuff you broker says might not be the stuff your broker does”.

A broker by definition is a facilitator, a go-between. Brokers match a buyer to a seller and make a commission for the introduction. A broker has two duties to perform, depending on who he’s acting for. To get the highest possible offer from the buyer, or the lowest possible price from the seller.

Things start to get a bit more complicated when a broker also has an interest in the outcome of the transaction. Take a real estate broker for example. If he owns a share in a particular property and stands to make a profit from the sale price, how hard is he going to work in getting the price down a potential buyer? Answer is, probably not very hard at all.

In the case of dealing desk forex brokers, that’s pretty much the case. Dealing desks don’t always hedge client trades, meaning they could well be left holding losing positions. You make money – they lose. You lose – they profit. If they can bias things in their favour they just might. After all, dealing desk brokers employ traders and my guess is they don’t employ them to lose money.

Considering they know where your stops are and have been known to re-quote in the past… You can probably guess where this is going.

FXCC doesn’t have a dealing desk. We don’t have any risk to hedge and all your trades go directly to our liquidity providers. You trades remain anonymous and all our providers ever see is the FXCC system.

We though the world of online forex was so weird and wonderful we even wrote a report about it, titled, perhaps a bit unimaginatively, The Weird and Wonderful World of Forex.

Give us an email address in the form at the top and we’ll get your copy straight to you. It’s well worth the read, even if we say so ourselves.
http://blog.fxcc.com/the-weird-and-w...orld-of-forex/

Source: FX Central Clearing Ltd. (FXCC BLOG)

More than weird I would call it as a wonderful world, but then it’s upon the person doing it, if we don’t use it wisely then we should not blame anyone on losing, I never play the blame game and always try to get rid of the mistake that I make and that’s why i now have got to the level of consistency that I wish to get, it has really helped me a lot and I am able to enjoy working here.

Also, it is the contribution from my broker OctaFX that has made me trade so well, it’s an ideal company to be working with and they allow me to enjoy things really a lot with their superb conditions.