Disliked{quote} 1. what is the profit that comes through fix manipulation per transaction for a specific bank? 2. do you think banks also can lose if yes what would you consider "significant loss" for a bank?Ignored
Can they lose money in the trading process? Of course! They lose like everyone else in the market from time time, but they definitely have positive expectation and very good RR with this manipulation tactics.
Just imagine that you are in such situation:
XXX/YYY pair sitting at key level, and you know that there are big stop orders 10 pips above, very little in between, and if the stops are triggered this will probably move the price another 10-20 pips higher.
Now image that you have the buying power to push the price up....
What are you going to do??
I mean, this is a sure win at least 90% of the time with minimal risk!