Hello,
I'd be very thankful for answering following questions:
(I have some information about all the issues but I'd like to know the details to fully understand them all)
1.Where does a broker get the price that I see on my screen from ? On what basis and by who is it calculated ?
2.Does the leverage means that in practice the broker lend me money(it's a collateral but there no such word in my language, does my trade involve the broker capital ? Can it be profitable to lend 100,000$ - margin just to get 30$ from 3 pips spread ?
3.When we trade Forex we trade on spot market where the physical deliver i dated for two business days. When I open a position through my broker I don't get the physical delivery, I trade with huge margin and I have to close my position - so do I trade currency or some kind of derivative ?
4.Could you explain me the rollover in details ? I know that it is the result of interest rates difference but but how to calculate rollover cost/gain and what kind of operation (forward?) is it ?
5.How does a retail broker work ? - connect only customers orders; trade with other currency trading institution (what kind) and participate in the market; does a broker take the opposite position to a customer and if yes is it profitable for the broker ?
6.Who can be a counterparty in my trade - broker/individual trader like me/non-financial company(importer or exporter)/financial company (hedging, investment fund)/bank dealing currency/my or other broker? Who loose when I win ?
7. Do you know where can I find some data, information or statistics regarding history and development of retail forex broker and electronic individual investors market share ?
Thank you for sharing your knowledge and experience.
Paul_K
I'd be very thankful for answering following questions:
(I have some information about all the issues but I'd like to know the details to fully understand them all)
1.Where does a broker get the price that I see on my screen from ? On what basis and by who is it calculated ?
2.Does the leverage means that in practice the broker lend me money(it's a collateral but there no such word in my language, does my trade involve the broker capital ? Can it be profitable to lend 100,000$ - margin just to get 30$ from 3 pips spread ?
3.When we trade Forex we trade on spot market where the physical deliver i dated for two business days. When I open a position through my broker I don't get the physical delivery, I trade with huge margin and I have to close my position - so do I trade currency or some kind of derivative ?
4.Could you explain me the rollover in details ? I know that it is the result of interest rates difference but but how to calculate rollover cost/gain and what kind of operation (forward?) is it ?
5.How does a retail broker work ? - connect only customers orders; trade with other currency trading institution (what kind) and participate in the market; does a broker take the opposite position to a customer and if yes is it profitable for the broker ?
6.Who can be a counterparty in my trade - broker/individual trader like me/non-financial company(importer or exporter)/financial company (hedging, investment fund)/bank dealing currency/my or other broker? Who loose when I win ?
7. Do you know where can I find some data, information or statistics regarding history and development of retail forex broker and electronic individual investors market share ?
Thank you for sharing your knowledge and experience.
Paul_K