Thread: How banks push price against you?

I've hypothesis on how the price moves.

Most of us would agree I consider these facts.

1. Liquidity providers are providing liquidity to make money.

2. They offer Bid and Ask. No trades are initiated by them.

3. Each time a trader buys Ask price, liquidity suppliers has an market now. Same manner when a trader sells in Bid, liquidity provider has a great buy.

How do they make money? They are constantly evaluating their web position and the price. If let's say they have 100 lots bought at 1.0000, they will offer to market at 1.0001 and the Bid will be set based on the spread. If more traders come in and market more, liquidity suppliers have more lots available. So they will recalculate their cost and will offer to sell at higher price.

If you were a liquidity provider would not you do exactly the same thing? Basically, price is moved from the traders rather than the liquidity suppliers. They provide Bid and Ask where they make money on their own position. Sometimes this may involve sitting on a large web position until they can cut back the position at position but they are capable of sitting on it. This is price seems to maneuver against the traders. Traders have little pockets so their stops could be struck but liquidity suppliers are never made to get out of their position until they make money.

We also have and agree some information to add.

First I would like to state that the quantities of trolls here denying the obvious items that yuri is stating is amazing. Why you put as much effort on denying something instead of trying to realize he may actually be stating the facts?

First I would like to mention that the huge players here in order, and the main reason .

1 Central Banks. ECB FED BOJ. They've an account of 100 trilions of their currency, you understand why? Since money can be created by them trought items and bonds . By Developing a bond, a money is being created with an interest rate. QE is simply buying back that bond together with money out of nowhere. QE will raise inflation bonds wont. Want a proof? Have a look at the public debt along with MN chart of eur usd. Of the dolar drops are actually money beeing. USA has 17 trilion dolars public debt most of it created after the popularization of forex market.
Should they have an arrangement for instance, involving FED and ECB they shall create currency for instance, ECB generates 3 trilion euros euro will drop from 1.50 to 1.20 then FED make 4 trillion dollars eurusd will raise back into 1.50 levels( american public debt shall raise by the exact same ammount);
Why they dont take action concurrently so the chart doesnt really proceed. Thats the key.
Plus central banks also have huge reserves, but for the FED at least officially cos dollar is only worlds main reserve currency.

2 Big forex banks
Citi Credit Deutsche these guys plays with bilions but never with trilions, I only watched an interview with a potential ex worker trader at these banks, what he basically said is that those banks have been scalping about with 500 milion dolars orders. Give me a break if I dont beleive it. I think he really never worked there.
Would you put a 500 milion dolars order using a 100 pips prevent loss?
No you'd rather play with much less money and much larger long term.
These guys fight against the central banks. But they could never comand the market. Have a look at the full value of these banks, they all together isnt powerful.

3 Brokers hedge funds big investors and soforth.
These ones are a mix between big banks and tiny investors.

4 Retail.
We are still an increasing mass, but still very modest part of the market. The reason we're created, that the bank system enabled us to come in is to offset balance their orders, or helping them battling the central banks.

For instance, eurusd droped from 1.60 to 1.20 of course most of those big players are buying, and nearly none of them wants to sell.
Central banks possess resources who knows ecxacly in which the profit is, they dont need info from brokers, they have it straight in forex system, dont forget it is a software with acess to significant data, these data are only permitted to central banks, maybe also for big banks, no one else.

So that you may be right yuri, the market wich for me is 90% controled by central banks, moves only towards the direction of profit, thats why we see such huge volatility in forex market. However, it doesnt mean it go against retail traders, for instance, a central bank only realised 60% of the money is on sell they'll pump it up, and if retail traders are buying they'll get the profit not the banks.

Originally Posted by ;

nice new location to pile up the bullshit and foolish assumptions thanks

And this comes from somebody who thinks there's somthing special with a 4H pub


Lorgic you have it right.... Whats up with this? Most here can not read or can not understand what they read

Originally Posted by ;

... they have an account of 100 trilions of the currency... they could make money trought bonds and things like QE. By creating a bond, a cash is being created with an interest rate. QE is simply buying back that bond with cash from nowhere. QE will raise inflation bonds wont... the bank system allowed us to come in is to offset balance their orders, or helping them battling with the central banks... Central banks have resources who knows ecxacly where the profit isthey dont need info from brokersthey have it straight from Currency Market system, dont forget it's a software with acess to important information, these data are only allowed to central banks, possibly also for large banks, nobody else....

What is the source ?

I knew it I always knew in my heart that someone worked - . They really see my 0.01 lot cease reduction - and they target it only to wipe me out - I must be one hell of a threat to their profit line.

There is a really simple answer. If large traders are looking to trade, then do not set a stop loss Come on men - is out to get us. Good retail traders trade with the banks not contrary to them - and they do it at a leverage and risk which makes it possible for the market movers to find the liquidity they need without diluting them out.

The very best way to slay a giant is to use its strength against it the best way to beat the bank is to play with the bank at its own game. Be one of those fish that hangs onto sharks - feed of the bank - because you are never goning to starve it.

JMHO...

Originally Posted by ;

I knew it - I always knew in my heart that someone was working - now I know that it's the big boys. They really see my 0.01 lot stop reduction - and they target it just to wipe me out - I need to be one hell of a threat to their profit line. There is a really simple solution. If large traders are searching for liquidity to trade, then don't put a stop loss in the center of the liquidity pool!! Come on men - is out to get us. Great retail traders trade with the banks not from them - and they get it done in a leverage and risk Which Allows the market...

Straight and just solution, taken

Originally Posted by ;

Stop studying what others are doing (no matter how big they are) and concentrate on your own trading. That's entirely the trader's fault when he's losing money. Not the broker error, not the bank error,...

could not have said it any better

any trader speaking about manipulation surely has not grown. . .still a babe . .

Originally Posted by ;

Call me nuts but that is what actually happens: FX dealers have ALL your information, regarding average position size, price entrance and SL levels. This information is given to the liquidity providers (Deutsche Bank, JPM and so forth ) and they are easily able to push the price until you get stopped out. In case you've traded FX for some years I don't think this info is surprising for you. Price goes from the path where it may cause pain that is maximum. (Let me add, this is not true for all of the markets for eg. Bond market but FX because here would be the most...

you're marginally barking up the wrong tree.

First of all, the majority of the users within this forum are retail traders.

The daily trading flow of retail Traders is merely 4% of the whole daily fx flow. Retail FX is a portion of the comprehensive FX market. 96 percent of the daily FX flow is Institutional flow.

So why would the big guys care about the 4%? They don't, they have to do with all the 96%.

This thread is amusing as hell.