In trading, security is a major factor in determining the success of trading. It would be very unfair if you already have a mature and steady trading strategy, supported also with a good trading psychology but it turns out you are in the wrong place and brokers where you are trading successfully deceive you. Everything you do becomes useless and the advantages that are already in sight just disappear.
Platforms, price quotes and order execution are the facilities provided by the broker, this is why as good and good as any psychology or trading strategy will be futile when a broker already has the intention to cheat by manipulating his client's trading. In these circumstances, the safety of your trading account is right there on the edge of the horn.
This is a terrible fact in the business world of brokers. Trading has become a separate business among brokers, there is always a way to get more profits from a trader, not even a few who cheat.
To your knowledge, here's how the forex brokers to cheat you
STOP LOSS HUNTER
Many rogue brokers often do this, they hunt stop loss by continuing to monitor their client's trades and outsmart spreads so Stop Loss is often picked up when there is no significant market volatility. The most common mode there are two, the first is to make a long spike to pick up Stop Loss installed by the trader, and the second is to widen the spread when the price is located close to Stop Loss.
This second mode often occurs in brokers that embrace the floating spread system, and this action is very difficult to recognize because indeed in this broker spread is often widened.
SLIPPAGE
The case is now much talked about by retail traders, many cases where orders are executed at unpaid and unnecessary prices. This case occurs in many brokers ECN / STP because of the way they work that send orders to liquidity providers. Although it runs automatically, but still there is a lag time that will be very influential in conditions of market volatility is very high.
Is this reasonable? Actually for this type of broker is quite reasonable to happen. But sometimes there are also using it with slippage in the market is not very active. They can even decide for themselves what bid-ask price they want for their trading manipulation to run smoothly.
SPREAD IN MARK UP
For this one cheat trick usually occurs in brokers with ECN / STP type which according to their acknowledgment the order is directly thrown to the liquidity provider. But please you know, not all of these types of brokers apply the original spread provided by the provider.
This type of brokers actually already get their own commissions from orders made, but because they want more profits, many of them who do shortcuts with a sparked up spread that has been provided. The easiest example, the base spread provided by the provider is 0.5 pips in the EUR / USD pair but the broker adds 1 pip so the trader bore the spread of 1.5 pips.
The difference of 1 pip is what makes brokerage income increases.
REQUOTE
This usually happens because the requested price does not exist and a new price applies, and the broker will offer a new price so you can make an entry. Very reasonable occurs when the volatility of the price is very high.
But if this happens when the volatility is not too high, then you should be suspicious, because brokers may be blocking you to get high profit when there is a very good trend. Requote not only happens at the time of entry market only, when you will close the position of your order, requote also very often occur in this kind of broker.
SWAP DIFFERENCE
If the transaction occurs more than one day, then you will be exposed to swp, where the amount of swap to be paid is different from one broker to another. But you have to be observant because sometimes in bad brokers, comparative swap calculation of central bank interest rates with the calculation of swap brokers could be different, here's a gap for naughty brokers take advantage of you.
Usually that will be harmed is a long-term trader where the cost of the swap is too negative will feel very burdened.
Platforms, price quotes and order execution are the facilities provided by the broker, this is why as good and good as any psychology or trading strategy will be futile when a broker already has the intention to cheat by manipulating his client's trading. In these circumstances, the safety of your trading account is right there on the edge of the horn.
This is a terrible fact in the business world of brokers. Trading has become a separate business among brokers, there is always a way to get more profits from a trader, not even a few who cheat.
To your knowledge, here's how the forex brokers to cheat you
STOP LOSS HUNTER
Many rogue brokers often do this, they hunt stop loss by continuing to monitor their client's trades and outsmart spreads so Stop Loss is often picked up when there is no significant market volatility. The most common mode there are two, the first is to make a long spike to pick up Stop Loss installed by the trader, and the second is to widen the spread when the price is located close to Stop Loss.
This second mode often occurs in brokers that embrace the floating spread system, and this action is very difficult to recognize because indeed in this broker spread is often widened.
SLIPPAGE
The case is now much talked about by retail traders, many cases where orders are executed at unpaid and unnecessary prices. This case occurs in many brokers ECN / STP because of the way they work that send orders to liquidity providers. Although it runs automatically, but still there is a lag time that will be very influential in conditions of market volatility is very high.
Is this reasonable? Actually for this type of broker is quite reasonable to happen. But sometimes there are also using it with slippage in the market is not very active. They can even decide for themselves what bid-ask price they want for their trading manipulation to run smoothly.
SPREAD IN MARK UP
For this one cheat trick usually occurs in brokers with ECN / STP type which according to their acknowledgment the order is directly thrown to the liquidity provider. But please you know, not all of these types of brokers apply the original spread provided by the provider.
This type of brokers actually already get their own commissions from orders made, but because they want more profits, many of them who do shortcuts with a sparked up spread that has been provided. The easiest example, the base spread provided by the provider is 0.5 pips in the EUR / USD pair but the broker adds 1 pip so the trader bore the spread of 1.5 pips.
The difference of 1 pip is what makes brokerage income increases.
REQUOTE
This usually happens because the requested price does not exist and a new price applies, and the broker will offer a new price so you can make an entry. Very reasonable occurs when the volatility of the price is very high.
But if this happens when the volatility is not too high, then you should be suspicious, because brokers may be blocking you to get high profit when there is a very good trend. Requote not only happens at the time of entry market only, when you will close the position of your order, requote also very often occur in this kind of broker.
SWAP DIFFERENCE
If the transaction occurs more than one day, then you will be exposed to swp, where the amount of swap to be paid is different from one broker to another. But you have to be observant because sometimes in bad brokers, comparative swap calculation of central bank interest rates with the calculation of swap brokers could be different, here's a gap for naughty brokers take advantage of you.
Usually that will be harmed is a long-term trader where the cost of the swap is too negative will feel very burdened.
Comments
Post a Comment