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trading with big accounts with the market maker

  • #1
  • First Post: Sep 11, 2008 2:46pm Sep 11, 2008 2:46pm
Hello everybody! sorry for a newbish question i am asking. I know that market makers match their client's positions inside the house or hedge the total position. It's obvious that with market makers your loss is their bread. When you constantly make money in the bucket shop with not big accounts they can bare it. But what about accounts of 50k and higher? I wonder if there are people who make money with big accounts at market makers. i compared the ecn with some mm, and found that trading with some mm is cheaper. Besides, during sydney or begining of tokyo you can see 6 pip gbp/usd and widened spreads on other pairs on the ecn. I think that some mm offer better trading conditions than ecn. But the question is left: is it possible to make money with the mm with big accounts (>,=50k)?? thanks.
  • #2
  • Sep 11, 2008 3:02pm Sep 11, 2008 3:02pm
Quoting vorschlag
Hello everybody! sorry for a newbish question i am asking. I know that market makers match their client's positions inside the house or hedge the total position. It's obvious that with market makers your loss is their bread. When you constantly make money in the bucket shop with not big accounts they can bare it. But what about accounts of 50k and higher? I wonder if there are people who make money with big accounts at market makers. i compared the ecn with some mm, and found that trading with some mm is cheaper. Besides, during sydney or begining of tokyo you can see 6 pip gbp/usd and widened spreads on other pairs on the ecn. I think that some mm offer better trading conditions than ecn. But the question is left: is it possible to make money with the mm with big accounts (>,=50k)?? thanks.
Depends on how you trade
Living the adventure in my head.
  • #3
  • Sep 11, 2008 7:24pm Sep 11, 2008 7:24pm
thank you for the reply. if you say "depends on how you trade" , this assumes that if you trade well you can profit with a big account with market makers. then i can't understnad why people chose ecn. If it only depends on how we trade.
  • #4
  • Sep 11, 2008 7:50pm Sep 11, 2008 7:50pm
Quoting vorschlag
thank you for the reply. if you say "depends on how you trade" , this assumes that if you trade well you can profit with a big account with market makers. then i can't understnad why people chose ecn. If it only depends on how we trade.
The ECN is what banks and hedge funds trade with.In other words the professionals.
You complain about spread in the ECN.You can close the spread by bidding or offering inside of the spread.
So if you are seeing a 6 pip spread in GBP/USD you can close that to 3 pips by putting your bid or offer in 3 pips above the bid or 3 pips below the offer.

With MM you cant.
Now some punters are happy hitting prices others like making them and being dealt on their spread.
The reason why the pro's prefer the ECN is its profitable.
in other words the brokerage they pay is cheaper than the spread.
The pro's have more than one broker, so you should too.
Have one ECN and one MM if you like.
Once you build up confidence using the ECN you will never look back.
Many are scared about bidding and offering because they feel if they get dealt on it will go against them thats why many prefer to hit the price.
Dont be. Whether you're paid on your offer or you hit the bid the market is going the way it wants to and remember everyone is trying to guess the next movement so we are all in the same boat.
Good Luck
  • #5
  • Sep 11, 2008 9:17pm Sep 11, 2008 9:17pm
Quoting vorschlag
thank you for the reply. if you say "depends on how you trade" , this assumes that if you trade well you can profit with a big account with market makers. then i can't understnad why people chose ecn. If it only depends on how we trade.
Not really. For example, im a member of a scalping forum and the users are having alot of problems scalping with the biggest and most popular MM around. Once profitable they are experiencing up to 10pip slips and other dodgey activities on the MM's part.
An ECN is the only way forwards for these people.

Leon
Living the adventure in my head.
  • #6
  • Last Post: Sep 12, 2008 6:21am Sep 12, 2008 6:21am
thank you guys for your information, it is really helpful.
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