DislikedIf Prop trader has a BIG big chunk order up as a SL. Market is lower atm. I as MM will need to worry about that imo. Ill dynamically hedge that fooker up by already buying the EUR now, when market is moving up. This is how market sees this strong moves to levels of interest. MM dont want your SL to be hit but closer it gets, MM will hedge it stronger. MM has its own limits. Holding a strong looser...hm, means you overhedged somewhere else. Hedging only with another pair? perhaps, dont really know the inside much When I get an order on EURCHF faghet...Ignored
So if the prop guy takes the extra money from the 90% retail ,the MM ends up in BE + comision , and the 10% retail also rips off the 90% retail.
So it may sound like a zero sum game, but also dont forget that new cash is added by central banks, and that cash may be from inflated sh*t, but usually comes from real wealth + labour + products/ services, as being circulated in the global markets.
So not always the 90% retail are robbed, but it can be any poor guy working at a company for low salary, so the markets extend to the entire world not only to the traders.
So its not really a zero sum game, techically all traders could be profitable (given that there will be some poor guy in the world that will give more labour than its payed for), so the market itself is not a zero sum game, but the world economy is
But because of their lack of experience/knowledge, the 90% of retail still gets it in their *ss on a regular basis
"There's a sucker born every minute" - P.T. Barnum