Where does my profit come from? | Page 2 | Forex Factory

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Where does my profit come from?

  • #21
  • Apr 26, 2010 6:04pm Apr 26, 2010 6:04pm
Quoting Rabid
In theory, forex is a negative sum game but in practice the losses are shifted to the weakest participants.
  • #22
  • Apr 27, 2010 12:23am Apr 27, 2010 12:23am
Quoting Sunsi

One more question, are there any ppl who are realy rich from only forextrading?
Some people make a lot of money from it, but I think they tend to diversify into stocks, commodities etc before they have obscene amounts of money solely in forex. If you can make money in forex you can make money just as easily in those things, so I doubt if many people become really rich ONLY from forex. There are people here at Forex Factory who have done very well for themselves though they dont tend to brag about how much they have made, just have a look around.
si hoc legere scis nimium eruditionis habes
  • #23
  • Aug 12, 2011 5:53am Aug 12, 2011 5:53am
Quoting Rabid
In small brokerages, positions are aggregated and the net is taken to the market... at least in general (assuming it's not a pure bucket shop).
Some brokers the ones operating a dealing desk, might not lay of the net position instantly, as long as the position they have is within their risk parameters.
They have traders watching the market and when they are bullish on e.g. EURUSD and their net position EURUSD is long, they might not lay of right away, but try to find a better point in time. When the net long position is growing then there might be a point in which the risk will become to big for them to carry and they will start hedging the surplus.
  • #24
  • Sep 1, 2011 6:12am Sep 1, 2011 6:12am
Hi guys,

I'm new in FF

many thanks for the explanation guys.

I get a lot of information here about the way forex market works between broker and retail trader. The picture is much more clearer after reading this thread.
  • #25
  • Last Post: Sep 2, 2011 4:53am Sep 2, 2011 4:53am
Quoting Sunsi
Thanks for some great answers, things are a bit clearer to me now.

I am so glad that you helped me and answerd my questions, cause i was afraid that if i got realy good the broker would lose alot of money, and if that was the case i guess it wasen`t something i would use my time on.

I feel like that would have been like blackjack, where you are playing against the house.

One more question, are there any ppl who are realy rich from only forextrading?
Yes there are, but the are not too many . Look at George Soros for instance...
go go go
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