{quote} Ok but WHO is the "markets"? LOL I mean we talk about the "market" as like it's a mythical figure that's just out there hovering over us, THE "MARKET"!! LOL Have you ever wondered what is the "market"? What makes up the "market"? You are obviously not a trader and who's basically here trolling with paraphrased copy-and-paste comments from others, but since you are here, I will still educate you and all the rest of the potential trollers out there. Have you ever wondered what "market" is? I will give you a hint. It starts with a "b" and ends...
Am I the one trolling or is it you? You want to act childish about this? Sure, we can act that way if you want.. First of all, I back myself up with actual market facts and what do you have to say for yourself? "NO I AM RIGHT YOU ARE A TROLL BANKS ARE THE MARKET NO I HAVE NO FACTS TO BACK MYSELF UP BUT SINCE I'VE BEEN BEATEN UP BY EVERYONE ELSE AND LOST MONEY DURING THE UNPEG AND HAVE TO GO ON DEFENSIVE I SAY ANYTHING I CAN BLAH BLAH BECAUSE I DON'T ACTUALLY UNDERSTAND HOW MARKETS WORK NOW DO SOME HOMEWORK!!!"
ALL market participants are the market, obviously. It's made up of a number of participants who all play their roles. Examples include banks who make markets and facilitate exchange between other participants and charge a spread, hedge funds and other types of funds who either speculate in FX or use it for hedging purposes, international businesses who are the reason the market was created for in the first place and look to hedge their business activity, central banks who police over the market and allow the price discovery process to occur, etc. From your point of view, the banks are the market and make fake pricing just for the hell of it to scam us out of our hard earned money. But that is such a flawed statement as the banks are only giving us the ability to trade. Read this statement carefully: If everyone else in the market IE hedge funds, commercial businesses, retail traders, etc. were gone from the market and only the market making banks remained, there would be no reason for the FX market to exist. ABSOLUTELY NO REASON. Therefore, the FX market is, once again, a collective place where different participants can come and interact in order to exchange currencies as needed in order to satisfy each of their respective goals. The banks fulfill their role by allowing these exchanges to occur and for their risk in doing so, are paid with a spread. Simple market microstructure 101. Banks aren't the market, everyone who is interacting in the market place is THE market. Please let that sink into your head for a moment.
First of all, retail traders didn't just lose thousands, many lost ten's of thousands and even hundreds of thousands, much more than they invested with their broker. Just an FYI. Second, the loss has to be in relative to their assets. Banks might have lost million's but their assets is in trillions, that's TWELVE zero's. Retail traders might have lost ten's of thousands and even hundred's of thousands but how much is their assets? You and I should know how many zero's is that.
And hedge funds who lost billion??? Billions??? Do you know what are...
OMG YOU ARE SO RIGHT THERE'S NO WAY HEDGE FUNDS COULD OF LOST BILLIONS I AM SO STUPID!! Except for the FACT that I can actually back what I say up..
http://www.reuters.com/article/2015/...0KQ0N920150117
"Hedge fund manager Marko Dimitrijevic is closing his largest hedge fund, Everest Capital's Global Fund, having lost almost all its money after the Swiss National Bank (SNB) scrapped its three-year-old cap on the franc against the euro, Bloomberg news reported on Saturday.
Citing a person familiar with the firm, Bloomberg said the fund had been betting that the Swiss franc would decline. The fund had about $830 million in assets at the end of 2014, according to a client report cited by Bloomberg."
That's already almost $1 billion and that's just ONE firm. Imagine all the losses other hedge funds had, so yes, hedge funds DID lose billions from the event.. Please, Mr. Impossible, let's see you back up your statement about how that's impossible..
The banks thought they could make a killing but it backfired because all their clients can't pay. I don't believe it that the spread has to be SO wide that there is no price to quote. This is NOT the first time that those major events happened and NEVER was the price feed stopped and NEVER for this long. There had been dried-up liquidity before in events like these but NEVER for an HOUR like this time.
Actually NO 99% of the retail traders who lost money were really due to their trading losses and not because of not able to recover the funds back from the brokers. There were only a few brokers, 3 or 4 so far I believe went bankrupt because of the SNB event. And out of the 3 or 4, there was only ONE broker that was unregulated and the founder basically took off with all of the traders' money. With the majority of the brokers that went down the funds ARE segregated, the biggest being Alpari UK, traders are getting their money back albeit very very...
Seems trying to discuss with you is like trying to argue with a wall. You obviously don't care to learn anything about market structure during black swan events and instead have to go on the defensive and be right.. I thought I was dealing with a mature adult, not a kid. Oh well.. I've said what I have had to say and it's up to everyone else to decide what they want to believe. Frankly, I could care less.
Continue complaining about the FX markets (yet still here trading them, what a strange thing to do) all you want. I don't really have time to continue arguing the semantics. Let's just agree to disagree and leave it at that. But from now on, you've made it to my ignore list as well and I'm done with this back and forth ping pong game that has accomplished absolutely nothing. I will be man enough (like I've been doing all along) and say good luck teacher! Have fun teaching your oh so intellectual wisdom!!
