books on currency trading
The liquidity provider will lose 99 pips 100 minus its 1 pip spread. In the opposite situation, when the market moves 100 pips against you, you will lose 102 pips 100 plus the 2 pips spread and your broker will still win 1 pip the markup. the liquidity provider will win 101 pips 100 plus its 1 pip spread. In both situations the broker wins, so there is no conflict of interest between you and your broker as the broker makes money when you trade, not matter if you win or if you lose. It is important to understand that most retail forex brokers are market makers. While the ECN model is profitable for the broker on both winning and losing traders, it also carries additional costs and generates less profits from losing traders. The broker must run a very powerful computer network with high speed connections and maintain a good relationship with several liquidity providers in order to be part of a good ECN with low spreads and fast execution. In addition to that, the broker's markup or commission is only a part of the total spread because the liquidity provider has its own spreads. If a trader loses all his money by paying spreads assuming he doesn't win or lose a single pip during his trading sessions until he goes bust, a market maker would take all the trader's money. In contrast, a STP broker will win only a part of it, while the liquidity providers will earn the rest. While Hot Forex offers many account types to cater to all type of investors, we recommend the VIP account for large investors.
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Although they can do the trade for you 24 hours a day and 5 days a week, it is impossible to keep your computer working for that long, and the risk exists that an unexpected crash of the computer system running the robot could cause catastrophic losses.
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Please note that Hot Forex operates a separate business for clients residing in the European Union under the company named HF Markets Europe Ltd with a Cysec license.
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books on currency trading