How brokers manipulate the market and how as a beginner in Crypto Currencies and Forex Trading Markets you should be aware of it.
As much as the market is always right some brokers tend to manipulate their moves, but not the market.
And the tool they use mostly is what we call stop loss hunting and take profit not being filled.
The market can move against you but not till it hits your stop loss, but when your stop loss is near your broker will force their market to hit it then it reversed very fast.
At the same time when the market moves in your favour hitting your profit then coming back your broker may slow their market so as not to reach your take profit level.
Another tactic that you need to watch by most brokers is monitoring of your margin level.
Youu may find a trade going against you till you get a margin call and all your trades get closed out, then immediately you see the trade reverse again back and go in the other direction.
One last thing is morning open small gaps with swaps just for you to get a margin call.
A trade that you left in bad condition may open up with a small gap and a huge swap that will finish all your margin.
Then you see the next candle reverse after your position is closed and your out of the game again.
I think we are losing to some rogue brokers as TRADERS.
Imagine a MENTOR talking about how BROKERS manipulate market moves to stop you or escape having you cash out..
Which BROKERS do u use???….
Always use brokers with proven and tested track records.
Brokers like :-
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I have also managed to share a lot from there experience until I could start managing my Real trade account personally.
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For forex and crypto trading at
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Another is :-
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Do you come across words such as No Dealing Desk (NDD)
INTERBANK, Electronic Communication Network (ECN)
Liquidity Providers … etc
When you are out there trying to select a broker?
My advice is to avoid such brokers like the plague.
My take on stop outs since it seems to have started a big debate.
1. If you believe that your broker increases spreads to stop you out, then it means that that during trend reversals spreads MUST be crazy.
I have never seen that happen with the brokers I recommended.
2. If brokers have the ability to hunt stops, it means they have the ability to move the market.
And if they have the ability, why are markets quiet during bank holidays?
Why don’t our brokers just move prices?
3. Spreads are mostly determined by the amount of liquidity in the market.
If there is low liquidity spreads will increase.
This is why at night spreads are high because there is low liquidity.
4. Also there is a situation where spreads increase during big news releases.
In my view it is because of low liquidity.
Why?
You see most investors, hedge funds and all institutions are risk averse.
So due to uncertainty of the news expectad, they tend to close their positions and watch the market reaction.
5. If stop hunting exists, it is done by market makers.
And they will place orders that will move prices to the extremes where retail traders are likely to have placed their stops.
My final take is yes stop hunting is there there but not at all times.
It is done during times of low liquidity because it is easy to move market with a big order.
Mostly it happens at night or during news releases since liquidity is low.
Also during London session stop hunts may happen since liquidity is there but an order which is big enough (say eg 10m USD) can be used to move prices to extremes where stops are likely.
When the market gets to the London-US session, you will rarely find manipulations since market has a lot of liquidity.
That order of 10m USD would be dissolved very easily.
So as a beginner in Crypto Currencies and Forex Trading Markets you must understand and study it well.
It is a very complicated thing to master.