If 90% of traders are profitable, what will happen to MM?

I know true ECN got no problem with that ,
but what about MM model ?

would they do business as usual , out of business , etc.

share your opinion

thanks

They'll go out of business

Just imagine 90% of the gamblers in casinos suddenly started winning... All hell would break loose, but would that ever happen? Not in a million year!

Btw you don't need 90% of clients to be profitable to drive the commonly knows MMs out of business; all you need is a couple of profitable big traders, and they're out.

you're right, it's small probability ever happen.

just an idea , if 90% of traders are following on one profitable trader , it can happen

thanks

If 90% of traders were profitable, where would all the money making up all their profits come from?

I don't know the source of money, could be from the rest 10% , could be from their capital/cash flow

I think somebody got to paid for the profit , and

if they can't pay, they out of bussiness

Simply answer is MM WILL FOLLOW THE PROFITABLE TRADERS > and they start making double profits from ECN brokers. end of the day MMs are always making Money .

BE WISE

MM teh naon ? ...

90% of traders are not profitable, so your question is a moot point. You might as well be asking "how many angels can dance on the head of a pin?".

The reality is most people lose at forex. The market is rigged, controlled by the big banks. Forex is a losing proposition. If you really want to trade currencies, try futures - at least the futures market is exchanged-traded, with rules in place, an actual level-playing field, unlike spot forex, which is a casino.

Lets clarify a few things here .

Market making is a term used loosely and it doesnt reflect the industry the way transactions are conducted.

A broker who is "betting" against you ie that doesn't cover your trade in the hope that you lose is called B-Booking (Something I personally oppose)

If the client starts to make money they will move you from the B-Book to STP or A book which passes your trade directly to the market.
The broker makes money by charging you a commission or a spread mark up.

So if all the clients make money which the OP has suggested the broker will still make money.

In the wholesale market there is no B booking just simply commission only and really the retail market should emulate that.

As far as the market being "rigged" by the big banks the futures price is in direct correlation from the Forex market which infact leads the futures.

There are many reasons why people lose at forex but you will find the main ones are over leverage,over trade and educated by charlatans and model sellers.