Did you know Australian CFD & FX brokers can use your money to hedge their exposures?
http://cfdfxforum.com.au/cfd-forex-petition/
http://cfdfxforum.com.au/cfd-forex-petition/
Your own HOLY Grail (and how you know you've found it) 19 replies
Trade What You Know and Know What You Trade 4 replies
When and how do you know you are ready to invest real money? 61 replies
If you love the EUR/JPY and you know it... clap your hands! 851 replies
What brokers would you want to use if you had 100k + million + account? 6 replies
DislikedDid you know Australian CFD & FX brokers can use your money to hedge their exposures? http://cfdfxforum.com.au/cfd-forex-petition/Ignored
DislikedDid you know Australian CFD & FX brokers can use your money to hedge their exposures? http://cfdfxforum.com.au/cfd-forex-petition/Ignored
DislikedWhat does it change ? If the money is at risk with customers' positions, they will only take a loss if the customers take a loss, so this money won't be needed anymore ... You have to understand that all the trades the customers take are against the broker, and when the broker hedges itself, it takes again the same positions against someone else (on a market, or with a liquidity provider). The potential losses the broker will take = the losses the customers will take. So it can be done with their money. To be correct, the broker takes the OPPOSITE...Ignored
DislikedLasty, the subject of the thread was: "The broker uses the money of the customers to hedge himself' ... Now, it's a very good point you're bringing up. I understood "hedge himself" as what I understand it means: To really HEDGE his exposure, not market making (or being a bucket shop, or aggressively B booking) So I don't see any problem with the customers' money being used for that. In the case you're mentioning: When the broker takes the customers' trades WITHOUT hedging himself, where does the money for the customers' gains come from ? The obvious...Ignored
Disliked{quote} This is not the case with B - Book brokers. If the broker is "betting against the client" on the trade and hasn't hedged and loses where does that money come from ? Client funds ?Ignored