Is there an official exchange rate?! - Page 2
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Thread: Is there an official exchange rate?!

  1. #11
    Quote Originally Posted by ;
    I wish to be trading at the biggest market.
    The best thing to do here is read all the stickies from the broker section ofnigeriaforextradingin regards to the liquidity query.

    I totally get what you are getting at here but the reality is that it only really matters with prime brokers and bank trading platforms such as currenex via ODL or Bank of America and these. The main reason is that the difference between the way the market maker and the way the true ECN operates. When you begin dealing with a genuine ECN then the dimensions and construction of thier liquidity pool becomes an essential factor in markets which are slim, fast or when you are trading dimensions.

    As far as market manufacturers prices go, it is actually a their choice as to what they reveal you. Their prices might be a composite of their liquidity providers, one of thier liquidity providors (or in some cases)-their only liquidity provider. The thing which makes this interesting is that just because a market maker is your biggest or has the most significant liquidity pool does not neccessarily mean they will show you the market. In fact many make considerable profit by showing you market while covering your trades in a different at a better price.

    The key to this is understanding how to fight this. Understanding how to quantify a brokers pricing and price movement. The best way to do so is to have access to multople brokers. You can do this by having many demos or possess a charting system like e-signal which has price feeds from dozens of major banks and brokerages.

    You ought to look at these composites and eliminate prospective candidates when their feeds always lag behind or trade outside the majority. Another fantastic thing to search for is alot of small increment varies in the price action. A common broker practice is to smooth out price movement. Meaning that while some other brokers may have a tick shift every second or so, a smoothing broker might just hold the exact same price until the price has moved 4 or 3 pips then they ch up. Elimanate the brokers who practice smoothing. This is evident price feed manipulation and is a indiion of more problems to come.

  2. #12
    I read somewhere, and perhaps somebody can describe, that mini accounts have nothing to do with all the interbank system and therefore are purely an in-house account. True?

  3. #13
    Quote Originally Posted by ;
    I read somewhere, and maybe someone can clarify, that mini accounts have nothing to do with all the interbank system and therefore are strictly an in-house account. True?
    This line is getting blurrier every day. By this I mean that brokers relationships with banks are evolving and changing. Some brokers cache their miniature positions then pass the larger average position on to thier liquidity suppliers, some have supposedly created relationships with their banks that allow them to pass smaller places on straight to said banks. This means that every one these places in 1 form or another are finally washed in the increased market. How many steps there are between the miniature orders and the increased market has a great assortment of answers. In the long run you cannot really know definitively since there's not any tranparecy in retail forex. The ch 22 is that just because your trade has a briefer or straighter route to the increased forex market does not neccessarily mean that you're getting better fills or trading atmosphere. You might have a retail broker fill you faster and better than a nearly ECN in quick or thin market. Which in the end means you've got a better trading environment using a classic school market manufacturer. WHile I'm not advoing market makers over ECNs, the fact is that ECNs do not always work better or even as well.

  4. #14
    Quote Originally Posted by ;
    Different brokers have different bid and ask prices for every single cross or pair. However, the bid and ask price is based on something...I'm assuming some official rate of exchange determined by something? What's this some thing and where do we do this official information?
    Thsi might assist with your query:

  5. #15
    The Ole Merc, ahh'. Such as the Ole Me. Still working and regulated<img data-emoji=”face_with_rolling_eyes” width=”18” height=”18” class=”emoji” src=”” /> 100 percent but overly Dull for your'NEW Quick Lane'

    Forgive me ... I apologise for scanning not only the thread, but in addition the links sincere apps DS, I appreciate how much work that was... and why I scanned the link to you was because I believed it was you that posted stage # 1 originally

    Two things come to mind.

    1) We are at least most people not dealing with THE Spot rate. The only legislation I am aware of on Borker Pricing'Suggests' that All Borkers be in accore with each other (the Position ) twice each day. Noon EST and I think Midnight EST.. This implies at 18:00 EST My Borker can be 50 Pips away from yours and still be in compliance.
    Single Borker Arb"<i>as</i></b>trage Anyone?

    Folks, From this standpoint, trading FX is still Back Alley Monty. Keep most of your money out of sight.

    Two ) Q? I Would like to trade the Peso. Which Borker, nea, Index gets the most volume attached to the Peso?
    2a) I actually don't want to trade the peso but does anyone know of a site which articles Traffic Time of Day in various Minor Currencies?

    Sorry I don't have that response but would want to read any articles responding to it.

    no hijack intended

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