Do you know how much does a broker know regarding you and your habits of trading? Your broker should know several things regarding you and habits of trading than you realize, mainly if your dealer runs their dealing desk instead of routing the order straight through Inter-bank. Dealing Desk does the searching to match the Order with any other client who trades the similar pair, but in an opposite direction. This way, trade remains in-house, any type of inter-bank directive is not paid and the order leaves the door of the broker.
St the base level, the broker will not review every deal that comes on your way, but they will definitely monitor the flows of the internal order to make sure they are placed in correct order with the costs of Interbank as well as the following tier down at EBS. The decision for routing the orders to the Forex market is automated and depends on various levels of volume, but the trade pattern will add to this particular decision as the account balance increases.
You will not find anything untoward regarding this particular trade model. This is not new, after all this is what the dealing desks are for. They are known for replicating Interbank and II level for internal uses and also by collating this type of data for generating internal liquidity. As long as the fills are dependable it does not make any difference where order moves, but realizing the things which are happening at Broker’s Desk might also assist in understanding the things that happens on occasions when the order is not filled.
Trading Pattern: You develop a trading pattern every day which can be followed easily and with the assistance of technology, you can easily track and then report. If for instance, you trade the similar currency regularly, you utilize the similar lot size and tend to hold trades for a specific time period; your new and recent order could be swapped with other in a reliable manner which moves in an opposite way. Once a person has a static account balance in a fixed level and a fixed trade pattern which can be simply followed, the orders will not leave the doors of broker if they acquire an active desk. The dealing footprint can be simply followed and then monitored. There are certain positives in what the broker you have appointed can do with the data.
Bio Trading: Trading bio of an individual’s habits, their trends, take profits, stop areas and also the time that you trade is an important tool for the dealer to influence in order to set a criteria in finding whether the orders run in the market of trading or not. When the broker demands liquidity in a specific pair, these might tip the hands in that specific decision also. Automation and technology in specific pairs reveal more regarding every trader.
Spikes and Slippage: You will not find anything underhand with the “Broker big brother” and you do not have to worry about anything as the dealer should not have unique cost spikes or develop slippage on a daily basis. Slippage, failed orders and spikes are regarded as a reflection of a single thing; the actual fact is there is no interbank order on both the sides on quoted costs, you will not find any type of conspiracy in Interbank for manipulating costs. Spikes will take place till a cost point is achieved. It is regarded as a natural flow of Forex trading market.
If the broker whom you have appointed runs the Dealing Desk it will definitely replicate Interbank and your habits of trading will form Level II of y6our broker or the EBS data. Therefore, as the account balance increases you should be aware while placing the trades
Big Brother? Is it a problem? Not actually, as long as one understands the flow of trading market, but is a thing that all of us should be cautious about, mainly at the time of placing large trades.
