DislikedThanks for replying, Jason. {quote} Yes, I always believed that. It makes sense. If your client goes broke, he can't make you money.Ignored
DislikedIs there any way the competing liquidity providers could know about my entry orders?Ignored
What Do Liquidity Providers See?
When a trader places an order through FXCM's Straight-Through Processing system, an exact matching order is sent from FXCM to the liquidity provider that is providing the best price. For example, a buy order in the example below would go to liquidity provider #2.
To the liquidity provider, all orders appear as Market Orders from FXCM and contain no information about the trader. Since your stops, limits, and your entry orders are invisible to these price providers, we create an environment free of price manipulation. When we combine this with no re-quote trading you have the opportunity to confidently trade all market conditions, even during key news events.
DislikedIf not, then do you believe it was simply an algorithm "reaching" in places where there are likely to be stops and entries? It sure seems to me that action is sentient and not random.Ignored
DislikedIf you look again at my charts, you'll see the ask price reach higher at the tops and the bid will reach lower on the bottoms.Ignored
An influx of buy orders near a market top can eat into the liquidity available in the market at a given ask price. This in turn results in the best ask price in the market rising to a higher level. When the ask price rises faster than the bid price, you see this on your chart as a widening spread.
When the demand from buy orders coming into the market is exhausted, you may see liquidity return on the sell side. This results in the best ask price in the market dropping. The ask price then comes back down to be closer to the bid, and you see this on your chart as a tightening spread.
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