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Who loose money when we win or make profit from forex trading?

Discussion in 'Beginners Bootcamp' started by RONSON, Jan 14, 2019.

  1. HollyHopScotch

    HollyHopScotch Recruit

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    No problem my friend.
     
  2. traderfx1977

    traderfx1977 Recruit

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    If you lose , someone win , so this is why is called trading.. everyone trade their own money , so they can win others people money , which are on the market.. If you have a experienced broker , the relationship will be win-win ,, the more you invest the more you win/lose. the best way to make profit is to have an PAMM account.
     
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  3. HollyHopScotch

    HollyHopScotch Recruit

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    The best way to make money is to learn and develop your own strategy.
     
    traderfx1977 likes this.
  4. traderfx1977

    traderfx1977 Recruit

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    Yeah you are right , but with 100$ you can't develop any strategy or to learn how to do it. Demo accounts doesn't prepare beginners for the real world trading.
     
  5. HollyHopScotch

    HollyHopScotch Recruit

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    I agree and disagree lol
     
  6. Grace1995

    Grace1995 Recruit

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    It completely depends on the type of broker linked to your account. These are two types of brokers: Market makers and pure ECN or STP brokers.

    Market makers are the type of brokers who set both the bid and ask price that is based on their own best interest. They do not provide the tight spreads. They may decide to hold your positions and may trade against you. Market makers may also move their currency quotes 10 to 12pips away from other market rates. In other words, they make a profit when you lose. ECNs are the type of brokers who pass on prices directly to traders from multiple market participants, such as banks and liquidity providers. They provide you with the best bid/ask price. Pure ECNs do not play any role in making or setting prices, therefore, the risks of price manipulation are reduced for traders. They do not trade against you and provide you with the tightest spreads and low commissions. However, they make money by charging a fixed commission to customers for each transaction.
     
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  7. EuroTrader

    EuroTrader Sergeant Major

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    If the forex broker is true ECN then we make trades with real traders who place orders at the same price. Whenever we win, there is somebody who losses at that particular price. While in some market maker brokers, there are chances of manipulation by the broker.
     
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  8. Notati

    Notati Recruit

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    Like with other financial markets, also on Forex, new money is not created. This is why there is saying that in order for somebody to win, somebody else needs to lose. Forex brokers are charging traders in pips or wide spreads, decreasing in this way overall profitability of position
     
  9. nahiyar

    nahiyar Private, 1st Class

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    I am not sure to tell who is loosing money when ,There are millions of traders working inforex market. All the time trading is going to be done. Some one loose some win. We can not calculate exact at what time who is looser. It happened brokers are more in profit when there are more loosers in market. Or some brokers are bankrup when they pay more profit to their clients.
     
  10. Thoris

    Thoris Private, 1st Class

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    I love this thread. Since I gained interest in Forex, I have been wondering who gets to lose when we win and who benefits when we lose.I think it all begins and ends with the broker, though I cant really tell for sure. What I know is that the broker has a part to play, which is why most brokers get suspicious with big trades and a broker can find every lame excuse to cancel your trade upon sensing a big win on your part
     

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