Who's money am I reaping? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

If you make money, does Oanda make money? 35 replies

Money Management..keeping the money... 39 replies

Help with Money Money Management Please! (Free EA) 4 replies

Bulls make money, Bears make money. And Pigs get slaughtered. 12 replies

Who's money am I reaping?

  • #1
  • First Post: Dec 17, 2006 12:29pm Dec 17, 2006 12:29pm
Who's money do I reap when making a profit and who pockets my money when I loose? If I take from my brokers account can they work against me, or is this some kind of cyber escrow protected from access by the broker that is fed by people constantly loosing money?

Please help me with this issue, it drives me mad.
Ekvattiekakkie
  • #2
  • Dec 17, 2006 1:43pm Dec 17, 2006 1:43pm
Hi!
I also have this question since i have started trading forex, and before. don't know this answer.I have a a ideea, but i'm not shure.
Hope that somebody whit more experience and good hart will respond this question. Untill then succes!
  • #3
  • Dec 17, 2006 1:56pm Dec 17, 2006 1:56pm
I would also like to know the answer to this question. It seems like all brokers leave this question unanswered... It would be nice to know what really happens behind the forex curtan.
  • #4
  • Dec 17, 2006 2:09pm Dec 17, 2006 2:09pm
The answer depends on what kind of broker you are trading with.

If you are trading with a broker who has a deal desk, then you are gaining at the broker's expense. Like gambling in a casino, you are playing against the house. If you open a position, the broker is the market maker, and it must take the opposite position. Google "non-dealing desk brokers" to find sites that tell you more about how this operates.

If you are trading with a true non-dealing desk broker, then your order is being aggregated with other orders to create the volumes necessary to trade the actual currency on the interbank. If this is the case, then you are gaining what other banks and traders are losing.

This is a zero-sum gain contest, just like roulette or craps or poker. If you are winning it's because someone else is losing. It is a very risky market, because you are competing against parties that have almost unlimited resources and time. In order to profit, you do in fact need to be smarter and in better control of your capital and trades than the other guy.

AFF
FOREX = 21st century alchemy.
  • #5
  • Dec 17, 2006 2:09pm Dec 17, 2006 2:09pm
Read this the other day might point you in the right direction...

http://www.forexfactory.com/forexfor...ad.php?t=11362
_____________ Kavs Make It Happen For Yourself
  • #6
  • Last Post: Dec 17, 2006 3:39pm Dec 17, 2006 3:39pm
Quoting afemi94ce
The answer depends on what kind of broker you are trading with.

If you are trading with a broker who has a deal desk, then you are gaining at the broker's expense. Like gambling in a casino, you are playing against the house. If you open a position, the broker is the market maker, and it must take the opposite position. Google "non-dealing desk brokers" to find sites that tell you more about how this operates.

If you are trading with a true non-dealing desk broker, then your order is being aggregated with other orders to create the volumes necessary to trade the actual currency on the interbank. If this is the case, then you are gaining what other banks and traders are losing.
AFF
Thanks afemi94ce and Kavsp, I'm with Interbank FX and they are a non-dealing desk broker and I trade anonymously, so everything seems to be above board. Thanks for helping me out.
Ekvattiekakkie
0 traders viewing now