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Old 06-08-2008, 12:39 AM
pjethwani pjethwani is offline
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Join Date: Jan 2008
Posts: 15
Default who are these market makers and how are they so influential?

Hi David,

thanks again

on a different note,

Who are these market makers?

How do they differ from regular traders (individual or institutional)?

How do they have the ability to move the market in their direction and profit from it?

sincerely appreciate your help


Quote:
Originally Posted by David Waring View Post
Hi pjethwani,

Good to hear from you.

I think you will find in trading that, with the very rare exception, there are no free lunches. There are sometimes things that look like free lunches but upon closer analysis they are normally actually more like the cheese on the mousetrap;-)

So the short answer to your question is no I think you will find it very difficult to make money in the manner that you discribe below for two reasons:

1. You do not normally make enough from the rollover to make up the spread in the currency pair that you are trading.

2. The market is on to this trick so if the market makers see people loading up to try and take advantage of rollover they are going to push the market against the trade which will make it unprofitable.

Hope that helps. Let me know if there are any other questions

Best Regards,
Dave
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