Disliked{quote} It's not a contradiction, you are just too stupid to know otherwise. Example: The risk threshold of broker x, a market maker, is the equivalent $10 million. This is set by the regulator (lets say the FCA) based on the amount of risk absorbing capital that company x holds to offset against losses. Broker X clients are positioned as follows on EURUSD: -66.6% of clients long = $30 million long on the eurusd -33.3% of clients short = $15 million short on the eurusd Net position of clients = $15 million net long. Broker X, which act as counterparty...Ignored
You must be messing with me! I can't believe in what you just posted!!
You are messing up with the exposure argument. It tells me you don't have a clue.
The MM is the counter party in any trade. COUNTER PARTY....understand!!!!!!!!!!!!!!!
As a trade moves against their clients their exposure diminishes not increases.
The trades are offset internally so they just have to hedge using LPs when clients are massively on the right side of the market.
Anyways!!!! Believe in what you want to believe!!!!
So, you think you have rights? LOL