For those who do not know the truth, please read the post.
A broker got you as his new client. You deposited like $250 (they allow even very small accounts just to hook you). You hope you will be winning. All the broker wants is your money be in his pocket. I explain how he does this.
For example the broker is DD (Dealing Desk). The point is that 99% traders are losers.
What DD broker does is he creates mini market out of his clients and his money.
When you buy, he finds another his client that sells. The deal is done. Usually your another counter party is your broker. Broker understands that you will lose and instead of letting go your money to market, why not intercept them for his pocket. You think that you do not care. But you should care and here is why. It not relates to demo accounts.
The game started.
1. You make buy. He creates slippage for you and/or requote. Your position is filled when 3-4 pips went against you to make you closer to your stop loss. When your position is filled, his position is filled with buy.
2. He does variable spreads like between 23-53 pips (on 3/5 digits values). Sometimes 13 pips to lure you as a client. I saw one broker at one time changed his spreads like 3-4 times a second within like 23-53 pips. On what spread your position will be filled? 23 or 53? Of course 53.
As a result you lost like 7 pips total before entering the "market". He knows that based on 99% losers you will finally lose your account. His risk is 1% plus rip offs. Stay tuned.
A broker got you as his new client. You deposited like $250 (they allow even very small accounts just to hook you). You hope you will be winning. All the broker wants is your money be in his pocket. I explain how he does this.
For example the broker is DD (Dealing Desk). The point is that 99% traders are losers.
What DD broker does is he creates mini market out of his clients and his money.
When you buy, he finds another his client that sells. The deal is done. Usually your another counter party is your broker. Broker understands that you will lose and instead of letting go your money to market, why not intercept them for his pocket. You think that you do not care. But you should care and here is why. It not relates to demo accounts.
The game started.
1. You make buy. He creates slippage for you and/or requote. Your position is filled when 3-4 pips went against you to make you closer to your stop loss. When your position is filled, his position is filled with buy.
2. He does variable spreads like between 23-53 pips (on 3/5 digits values). Sometimes 13 pips to lure you as a client. I saw one broker at one time changed his spreads like 3-4 times a second within like 23-53 pips. On what spread your position will be filled? 23 or 53? Of course 53.
As a result you lost like 7 pips total before entering the "market". He knows that based on 99% losers you will finally lose your account. His risk is 1% plus rip offs. Stay tuned.
