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Will Brokers Ban You For Doing This Practice

  • #1
  • First Post: Jun 12, 2011 10:07pm Jun 12, 2011 10:07pm
After the EarthQuake in NZ. I was scalping EURNZD. However my brokers spread with EN was about 5 pips. So instead I just traded the EUR/USD and NZD/USD counterparts. My combined spread doing that was around 2.

Do brokers allow this practice? Or will they ban you?

Because I can always doing this on two separate brokers. That way they will never catch on.
  • #2
  • Jun 12, 2011 11:40pm Jun 12, 2011 11:40pm
Quoting adaseb
After the EarthQuake in NZ. I was scalping EURNZD. However my brokers spread with EN was about 5 pips. So instead I just traded the EUR/USD and NZD/USD counterparts. My combined spread doing that was around 2.

Do brokers allow this practice? Or will they ban you?

Because I can always doing this on two separate brokers. That way they will never catch on.
don't understand what your doing wrong
  • #3
  • Jun 13, 2011 12:26am Jun 13, 2011 12:26am
Quoting adaseb
After the EarthQuake in NZ. I was scalping EURNZD. However my brokers spread with EN was about 5 pips. So instead I just traded the EUR/USD and NZD/USD counterparts. My combined spread doing that was around 2.

Do brokers allow this practice? Or will they ban you?

Because I can always doing this on two separate brokers. That way they will never catch on.
They shouldn't because you are trading two seperate currency pairs otherwise everybody would be banned for trading more than one currency pairs simultaneously because nowadays there is pretty much a cross for every single two pairs of currencies out there.

If they ban you, change the broker. It's them who want your business and not the other way around. Plenty of good brokers out there.

Good luck!
Make your losses in demo. Earn your profits live.
  • #4
  • Jun 14, 2011 12:27pm Jun 14, 2011 12:27pm
No what I mean is

Instead of buying EUR/NZD and paying a 5 pip spread

I buy EURUSD and sell NZDUSD the average spread is about 2 for both of them.

When I buy EUR/NZD i buy the Eur and Sell Nzd.

So buying EURUSD I buy the Eur and Sell the Usd. When I sell NZD/USD, i sell NZD and Buy the USD, so the Usd counterpart cancels and I am pretty much trading EUR/NZD without the large spread.
  • #5
  • Jun 14, 2011 2:01pm Jun 14, 2011 2:01pm
Quoting adaseb
No what I mean is

Instead of buying EUR/NZD and paying a 5 pip spread

I buy EURUSD and sell NZDUSD the average spread is about 2 for both of them.

When I buy EUR/NZD i buy the Eur and Sell Nzd.

So buying EURUSD I buy the Eur and Sell the Usd. When I sell NZD/USD, i sell NZD and Buy the USD, so the Usd counterpart cancels and I am pretty much trading EUR/NZD without the large spread.
Yes we all understood you the first time and we told you that your broker shouldn't care if you do that because you are trading two different pairs, EUR/USD and NZD/USD and it's perfectly normal for any traders to buy and sell different pairs even if they are not looking to trade the cross that they represent. If they ban that they wouldn't have any clients left.

If you are truly afraid it will cause your broker to ban you for that, don't do it.
Make your losses in demo. Earn your profits live.
  • #6
  • Jun 14, 2011 3:48pm Jun 14, 2011 3:48pm
Quoting adaseb
No what I mean is

Instead of buying EUR/NZD and paying a 5 pip spread

I buy EURUSD and sell NZDUSD the average spread is about 2 for both of them.

When I buy EUR/NZD i buy the Eur and Sell Nzd.

So buying EURUSD I buy the Eur and Sell the Usd. When I sell NZD/USD, i sell NZD and Buy the USD, so the Usd counterpart cancels and I am pretty much trading EUR/NZD without the large spread.
Hi,

Don't think that the average spread is 1. You are paying spread for both pairs so you should not thing average but TOTAL spread that will get you back to 5 pips spread!

When you buy eurusd you pay for the spread then back on NZDUSD so if you immediatly liquidate the position you will loose pips on EURUSD SPREAD & same on NZDUSD SPREAD. Calculating the average is wrong.

Good luck
13
Brokers are angels
  • #7
  • Jun 14, 2011 6:01pm Jun 14, 2011 6:01pm
Quoting adaseb
No what I mean is

Instead of buying EUR/NZD and paying a 5 pip spread

I buy EURUSD and sell NZDUSD the average spread is about 2 for both of them.

When I buy EUR/NZD i buy the Eur and Sell Nzd.

So buying EURUSD I buy the Eur and Sell the Usd. When I sell NZD/USD, i sell NZD and Buy the USD, so the Usd counterpart cancels and I am pretty much trading EUR/NZD without the large spread.
Will they ban you ?
No they will love you..
The cross rate EUR/NZD spread shud be always tighter than the EUR/USD and NZD/USD which are the "legs" to the cross.
  • #8
  • Jun 14, 2011 10:56pm Jun 14, 2011 10:56pm
Quoting adaseb
After the EarthQuake in NZ. I was scalping EURNZD. However my brokers spread with EN was about 5 pips. So instead I just traded the EUR/USD and NZD/USD counterparts. My combined spread doing that was around 2.

Do brokers allow this practice? Or will they ban you?

Because I can always doing this on two separate brokers. That way they will never catch on.
I do not see "illegal" actions in it))
  • #9
  • Jun 15, 2011 3:38am Jun 15, 2011 3:38am
IMO you can trade any currencies pairs you want using any trading strategy you prefer. Otherwise, I should agree with forexia, look for other broker.
  • #10
  • Jun 20, 2011 12:42am Jun 20, 2011 12:42am
Quoting adaseb
After the EarthQuake in NZ. I was scalping EURNZD. However my brokers spread with EN was about 5 pips. So instead I just traded the EUR/USD and NZD/USD counterparts. My combined spread doing that was around 2.

Do brokers allow this practice? Or will they ban you?

Because I can always doing this on two separate brokers. That way they will never catch on.
What is your broker?

Just curious...
  • #11
  • Last Post: Jun 20, 2011 1:07am Jun 20, 2011 1:07am
Quoting slovforex
What is your broker?
Yes, that would be rather interesting to know ...
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