The Real Market Place for Spot FX
The real market place for spot fx is not always moving, it’s the retail forex brokers that are leveling the field for us to trade on. For example you are used to a 1-2 wide spread on say the eur/usd but the true spread with the liquidity provider may be 100 wide. So the broker sends all its eur/usd long trades to their liquidity provider who gives the broker a price and then simply requites the trade next. Meaning the long eur/usd trades may have been a winner but the bank just re-quotes the price on their books never seeing a loss. I am just saying, not zero sum market. But that’s ok, we are looking to be 50 percent right with good 2:1 risk to reward and that’s done everyday in the market place.