I have just one question that bothers my mind an I would like to know is my opinion is right or there is other answer to the question.
How do forex brokers make laverage?
If I trade with margin 2%, and the sum of 100% of the money is exchanged on the forex market (I mean in I level forex market by market makers), where does the broker cover the 98% of the money exchanged?
Does it borrow it from the bank for the trade time (if it is roll over)? Or firstly compensat the trade with oposite trade made by other investor? Or both?
How do forex brokers make laverage?
If I trade with margin 2%, and the sum of 100% of the money is exchanged on the forex market (I mean in I level forex market by market makers), where does the broker cover the 98% of the money exchanged?
Does it borrow it from the bank for the trade time (if it is roll over)? Or firstly compensat the trade with oposite trade made by other investor? Or both?