The foreign exchange market is a zero-sum market, like any zero-sum market, where one side is making money and the other side is necessarily losing money. In our previous article on who your forex trading counterparts might be: Participate in this market, as long as you trade, everyone can be your opponent, but due to the size of the order, a low-level player is difficult to match with a high-level player, who has basically defeated or been defeated by an opponent at the low end.
I'm not sure what to do.
What's wrong with you?
For example, a trader may not actually execute all of his client's orders, and the company loses as much as the client makes, and the company loses as much as the client makes.
What does this mean?
Let's assume a scenario (pure assumption, of course this is illegal): Suppose someone A buys some of Hugofx's stock through securities company B, the stock is visible on the exchange, but securities company B feels that Hugofx's stock will fall, so they don't put A's payment on the exchange, they just hold it in their hands.
So, once the price of Hugofx's stock falls, Securities Company B makes money; and once the price of Hugofx's stock rises, Securities Company B loses money.
As you can see, Securities Company B and someone A are in a pair relationship on Hugofx.
However, if SEC B uses fair dealing, he will place the purchase of Hugofx on the exchange, and at the same time sell the shares of Hugofx based on his own judgement of the price, which is the self-trading of SEC B.
Currency pairs in currencies
This is a scenario that we have just assumed, and in forex trading, the first thing that is allowed is the B-Book mode (not paying out to liquidity providers).
We know how the bids come from the average trader.
Multiple quotes are accessed from the liquidity of the currency, while the lowest buy price and the highest sell price are selected from these quotes (the two naked prices can be analogous to the price of the stock exchange in the scenario just assumed), and finally, on the basis of this naked price, the margin of the platform itself is added, forming what we see as the platform's offer to the trader.
Let's say that there is now a customer C who bought USD/JPY through a foreign exchange trader D, and trader D left the payment to the liquidity provider.
Then client C and the foreign exchange trader D are not rivals and there is no peer relationship.
At the same time, if Forex trader D also sells USD/JPY on the side of the liquidity provider, then client C and trader D may have a rival relationship, but not a parity relationship; as they are both trading between liquidity providers.
So what is a currency pair?
Now there is a client C who buys USD/JPY through a foreign exchange trader D, and the forex trader, as in the stock scenario just before, does not order the order from the market, but eats it himself, which is usually called a take position.
Then client C and forex trader D are not only in a rival relationship, but also in a direct rival relationship.
My mother-in-law and I are in the market.
Do you want to be a marketer?
A trader can say that I am a marketer (which is compliant) but can never say that I am a marketer to a customer.
Market maker is a legal entity operating in the securities market as a franchisor, with a certain strength and credibility, who continuously reports to the public investors the bid price of certain securities (i.e. bid- bid), and at this price accepts the bid request of the public investors to trade securities with investors with their own funds and securities. The buyers and sellers do not have to wait for the counterparty to appear, as long as the market maker comes out to undertake the counterparty.
The NYSE Speciallist Firms is a good place to start if you want to be a marketer.
What are the responsibilities of the NYSE Speciallist?
1.Manage the opening process.
The day-to-day management process, keeping an eye on the price of a particular security on the open market.
2.Execute orders for floor brokers.
Choose to execute the order immediately or hold the order until the customer's lock price is reached. Help the customer execute the order before the target is reached.
3.Serve as catalysts.
In addition, the company has also been involved in a number of other projects, such as the creation of a trading camera, which is now largely replaced by ECN.
4.Provide capital.
If the buy-side index is short-term in excess of the total bid or short-term in excess of the total bid, they use the company's own funds to balance the short-term total. This provides partial liquidity, which is not more than 10% of the total transaction, and in fact is difficult to exceed. This not only provides short-term liquidity, but also to prevent the phenomenon of panic dump caused by large area price differences or liquidity drought.
5.Stabilize prices.
Stabilizing market prices to prevent price stability from being smooth. The first minute the price was 10 yuan, then the next minute it was 5 yuan.
There are now very few so-called specialist firms, most of which have a seat on an exchange.
Market Maker is a weakened version of Specialist.
Therefore, professional market makers generally call themselves liquidity providers. They are now generally using high-frequency trading systems to provide liquidity for exchange-specific trading products, including forex, stock options, and ETFs, using milliseconds of buying and selling very close to the New York Stock Exchange.
This is the case with the TFX foreign exchange swap in Japan.
Both individuals and institutional members can apply to become market makers and obtain market maker qualification after being reviewed by the exchange. According to the regulations, market makers are required to continuously provide reasonable two-way quotes on all foreign exchange security transactions on the exchange during the trading hours. This market making model increases competition between market makers, which can ensure that investors get the best quotes.
As of November 2014, there are six listed companies on the Tokyo Financial Exchange, which include Mitsubishi Bank of Tokyo, Barclays Bank, Deutsche Commercial Bank, Goldman Sachs Japan, Deutsche Securities and Nomura Securities.
So what does it mean to be a marketer?
Virtu, as an electronic market maker, uses the technical means of high-frequency trading, but unlike the market maker of high-frequency trends, it is a liquidity provider, a "partner" on which the markets rely, and Virtu's strategy is "market neutral" ("neither doing much, nor doing nothing, profitable walking").
I'm not sure what to say.
A qualified marketer is by no means a simple platform to compete.
This qualified market maker must have compliant regulation, give fair and equitable quotes to customers, have strong financial strength, be able to provide liquidity for market autonomy, at the same time have a strong control over market risks, and also contribute greatly to stable market prices.
Translated from WeChat