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

7Bulletin

Sergeant
Messages
141
Broker probably. That's why not that many people actually win anything no matter how hard they try. It's remind me a bit of gambling - casino always (ok, most of the times) win. For you to win constantly you need to learn how to be that forex broker initially.
 
Messages
3
When we make profit from the forex trading, who loose? Or from where the money come from? Forex trading is not like share trading. In share trading there are buyer and seller with the exact quantity and specific contract for trade. When you buy share you are paying money to the seller indirectly, which meant if he make profit, the money come from you as a buyer. Whereby in forex trading there is no specific contract or quantity to trade. So my question is if you make profit in forex trading where is the money come from? Let say i buy 1 lot EURUSD at 1.1450 and close it at EURUSD 1.1500 and i make 500 USD profit, so who loosed this 500 USD? Like in money changer they bought in USD notes for exchange and make profit from the spread. They will sell USD notes as long as they can make profit base on current exchange rate. What happen if the USD become weaker? I believe no one is willing to loose money doing business and they can just put up a sign board telling that they are running out of USD notes or they can maintain their exchange rate but no want will buy from him. No matter how they still can prevent their losses and selling again USD notes when the exchange rate bounce back. I am referring to true ECN account where the trade is link to the banker or instituitional liquidity provider. I dont think they want to loose money either. So again my question if i make profit in forex trading, who loose? Sorry for my bad english if you could not understand my question. I really need to find out this before decide to go further in this forex trading. I started trading forex two months ago and still a newbie in the learning stage. So far had loosed few thousand USD but i still see a potential to make money from forex.

It will be either the broker or their liquidity provider. It depends on the broker your use and how they choose to book their clients. Using an STP broker is always safer than a B-book broker.
 

nahiyar

Private, 1st Class
Messages
826
If already start with big amount of money, indeed this will become the sensitive case, if finding a bad broker and facing a problem with withdrawn money, it will make disappointed of course, so looking good broker also need research, FPA is one source to getting some review for broker, but also need to compared with another source
Withdraw is a big problem from brokers they specially make hurdles to withdraw a big profit amount. A trader needs to do work with a well reputed broker. It is right if we win broker has to pay us but when most of the people loose they make the money from loss so brokers are not in loss at all . They are in market because they maximize profit, other wise why they pay money from their own pocket.
 

bigdolly

2nd Lieutenant
Messages
1,027
It will be either the broker or their liquidity provider. It depends on the broker your use and how they choose to book their clients. Using an STP broker is always safer than a B-book broker.
Yeah, and I would also add that you have a right to know who makes the market for you. For example, Hotforex states in their Terms and Service about that.
 

fxoday

Master Sergeant
Messages
328
Market forex is decentralized, this is like a network with interconnection like as banks, exchanges, government, etc in forex there are called as a liquidity provider, like as reutters dealing spot and EBS Electronic brokering service, both are like as company Pepsi and coca-cola, offer the same product but different prices, then Banks from a small and medium-size, retail market maker, retail ECN, Hedge fund and commercial company, retail trader,

Where profit any trader actually from the market mechanism where if we lose then another will profit, but different case if dealing desk broker, if we lose broker win, and likewise
 

bigdolly

2nd Lieutenant
Messages
1,027
Market forex is decentralized, this is like a network with interconnection like as banks, exchanges, government, etc in forex there are called as a liquidity provider, like as reutters dealing spot and EBS Electronic brokering service, both are like as company Pepsi and coca-cola, offer the same product but different prices, then Banks from a small and medium-size, retail market maker, retail ECN, Hedge fund and commercial company, retail trader,

Where profit any trader actually from the market mechanism where if we lose then another will profit, but different case if dealing desk broker, if we lose broker win, and likewise
Yeah some brokers are market makers on some instruments but it's good because it helps to reduce transaction costs and make trading cheaper.
 

Nnn.h

Private, 1st Class
Messages
35
It's impossible for all traders to start trading only sell/buy at the same time. and impossible everyone suddenly starts earning. among all my closed orders 30% are losses. and for someone this % is much higher or vice versa much less.
therefore as for me when one trader get profit the other one at the same time get loses. why? cause they cost one currency but one sells and the other buys. that's how i see it.
 

henyo

Master Sergeant
Messages
438
yup, some else gains our loses, or we win their loses, and so on, a little in between goes here and there, from spreads to brokers to fees etc. a never ending cycle lol
 

fxoday

Master Sergeant
Messages
328
yup, some else gains our loses, or we win their loses, and so on, a little in between goes here and there, from spreads to brokers to fees etc. a never ending cycle lol
Broker has the role as a bridge among trader to the liquidity provider, but a different case to bucket shop broker, they can manipulate the prices to make trader loss, because trader loss will become profit broker, although they offer big bonus, actually only attract trader and they not really giving for free, there are strict rules to withdraw profit bonus
 
Top