Lets create our own community Forex firm. The trader will be designated as 'trader' and the individual or company quoting him a spread will be designated as 'quoter'. 99% of traders will blow their accounts in a one year period, especially those who trade on a daily basis. Thus there is no real point in hedging 99% of forex trades. The forex brokers only hedge profitable forex accounts in anycase. Fxpro for example have two physically seperate servers: one for the 99% of accounts running at a loss and one for the those making a profit, the trades of which they hedge.
Thus setup a forex broker firm that will quote preferably an active forex trader a 1pip spread using an broker demo account and mark-to-market all profits or losses on a daily basis from an eschrow account, held in trust by an independant third party. The advantage for the trader is that he will suffer no slippage and requotes. From the quoter he is making a bet 100: 1 that the trader will loose.
Any individual can thus quote anybody else forex spreads with zero risk to either party since they both must post margin to the
http://legal-dictionary.thefreedicti...Escrow+account account and all
lossess/profits transferred to either party's actual bank account at the end of the trading day or settled using Paypal.
Both parties could set a max limit to their respective profits/losses, the risk will be clear on the outset to both. The legal tools to setup such an agreement between two individuals are available, Hong Kong, UK would probably be preferred for very large amounts. One advantage of this would
be to reduce the spreads even further for the forex community.
The quoter would on a statistical basis be almost 99% guaranteed of making money. Imagine going to the casino and taking a bet with the odds of 100:1 that if you pull the lever with a paw-paw, banana and monkey, you won't get three bananas in a row. You thus become the house, instead of a forex trading gambling fool for a change.
Hundreds of quoters could form trust companies and scour for active traders, especially those attending trade conferences or those to deceived to understand why Larry Williams, Oliver Velez and Linda Rasche etc.. are selling people a pipe dream.
Literally anything , under any terms for any period is possible between multiple traders and quoters. An agreement for say a small amount of $100 could be so informal that only your word would be needed and the money tranferred to either party via Paypal. If either trader or quoter fails to honour his agreement , he is reported in this thread to the forexfactory community.
Me personally I would be the trader and are willing to entertain any quoter willing to give me a 1pip spread using broker demo as reference for a negotiated period and predetermined max profit/loss etc.... use your imagination.
Thus setup a forex broker firm that will quote preferably an active forex trader a 1pip spread using an broker demo account and mark-to-market all profits or losses on a daily basis from an eschrow account, held in trust by an independant third party. The advantage for the trader is that he will suffer no slippage and requotes. From the quoter he is making a bet 100: 1 that the trader will loose.
Any individual can thus quote anybody else forex spreads with zero risk to either party since they both must post margin to the
http://legal-dictionary.thefreedicti...Escrow+account account and all
lossess/profits transferred to either party's actual bank account at the end of the trading day or settled using Paypal.
Both parties could set a max limit to their respective profits/losses, the risk will be clear on the outset to both. The legal tools to setup such an agreement between two individuals are available, Hong Kong, UK would probably be preferred for very large amounts. One advantage of this would
be to reduce the spreads even further for the forex community.
The quoter would on a statistical basis be almost 99% guaranteed of making money. Imagine going to the casino and taking a bet with the odds of 100:1 that if you pull the lever with a paw-paw, banana and monkey, you won't get three bananas in a row. You thus become the house, instead of a forex trading gambling fool for a change.
Hundreds of quoters could form trust companies and scour for active traders, especially those attending trade conferences or those to deceived to understand why Larry Williams, Oliver Velez and Linda Rasche etc.. are selling people a pipe dream.
Literally anything , under any terms for any period is possible between multiple traders and quoters. An agreement for say a small amount of $100 could be so informal that only your word would be needed and the money tranferred to either party via Paypal. If either trader or quoter fails to honour his agreement , he is reported in this thread to the forexfactory community.
Me personally I would be the trader and are willing to entertain any quoter willing to give me a 1pip spread using broker demo as reference for a negotiated period and predetermined max profit/loss etc.... use your imagination.