so why does the market price pump and rest????
the answer (or at least part of it) may lay in this post from our friend fti...
Hi All,
ok, leighsww, here goes
About market strucuture.
You see the brokers are not all bad people out to get everyone. They provide a service of creating a replica model of the interbank mkts for the consumption of the small traders at large.
Of course their motivation to do so is profits but nevertheless they provide a service.
At the very top of the battlefield command is the Feds. The are the owners of the market. Whatever you may trade its normmally against the USD. (even the crosses.) So in perspective you will always be walking into their radar.
They have this big chief, brainspan (used to be the cigar chewing...paul )who have a whole squad of ppl crunching numbers to determine their position and whether there're things they could do to improve their position.
then down the food chain there's the Other Central banks having their radar on their respective currencies.
The hands and legs of the feds are the CB dealers, who's resposibilities are to police the market place,
making sure that its behaving itself. Its chief responsibility is to acertain that there's no riots in the market.
So long as things are peaceful, they leave everybody alone to do their thing.
then just under them is the tier ! bank dealers. These dealers are normally marketmakers to the interbank mkt, and have very large daylight limits and risk parameters to work within. They are also the eyes for the CB dealers, as most large customers go thru them to deal. So they can see who's buying or selling dlrs.If there are irregularities where by some large customers comes into the mkts to buy or sell dlrs the CB dealers are put in the know and will be on standby to see if markets may be disturbed.
Then under teir 1 banks will be tier 2 banks, and tier 3 banks, they function as the lines of distribution. If as in the eg above, alarge corp comes selling dlr and the CB dealers do not intervene, then the tier ! banks will start selling the dollar down to tier 2 banks in smaller packages, and tier two banks will like wise start selling to tier 3 banks in smaller packages. In 20 to 30 mins that process who fizz out and most dealers would be short of dollars. to a certain extent.
Please be aware that I am talking of a one off scenerio, where there is only one customer in the whole wide world.
watch it the mkts moving
https://www.forexfactory.com/showthr...42#post1731842
the answer (or at least part of it) may lay in this post from our friend fti...
Hi All,
ok, leighsww, here goes
About market strucuture.
You see the brokers are not all bad people out to get everyone. They provide a service of creating a replica model of the interbank mkts for the consumption of the small traders at large.
Of course their motivation to do so is profits but nevertheless they provide a service.
At the very top of the battlefield command is the Feds. The are the owners of the market. Whatever you may trade its normmally against the USD. (even the crosses.) So in perspective you will always be walking into their radar.
They have this big chief, brainspan (used to be the cigar chewing...paul )who have a whole squad of ppl crunching numbers to determine their position and whether there're things they could do to improve their position.
then down the food chain there's the Other Central banks having their radar on their respective currencies.
The hands and legs of the feds are the CB dealers, who's resposibilities are to police the market place,
making sure that its behaving itself. Its chief responsibility is to acertain that there's no riots in the market.
So long as things are peaceful, they leave everybody alone to do their thing.
then just under them is the tier ! bank dealers. These dealers are normally marketmakers to the interbank mkt, and have very large daylight limits and risk parameters to work within. They are also the eyes for the CB dealers, as most large customers go thru them to deal. So they can see who's buying or selling dlrs.If there are irregularities where by some large customers comes into the mkts to buy or sell dlrs the CB dealers are put in the know and will be on standby to see if markets may be disturbed.
Then under teir 1 banks will be tier 2 banks, and tier 3 banks, they function as the lines of distribution. If as in the eg above, alarge corp comes selling dlr and the CB dealers do not intervene, then the tier ! banks will start selling the dollar down to tier 2 banks in smaller packages, and tier two banks will like wise start selling to tier 3 banks in smaller packages. In 20 to 30 mins that process who fizz out and most dealers would be short of dollars. to a certain extent.
Please be aware that I am talking of a one off scenerio, where there is only one customer in the whole wide world.
watch it the mkts moving
https://www.forexfactory.com/showthr...42#post1731842
-be careful about what you allow to be put in your mind-
Then price reversed on the 2nd minute and if I had kept it, would have been far in negative. That's a Scalping indeed (2 years ago? don't remember exactly, that time U/J was good to make surprises...
