Forex secrets: what the market maker is silent about

Forex secrets: what the market maker is silent about

Forex secrets: what the market maker is silent about

There are a huge number of secrets in the world that almost no one knows about. The most interesting thing is that they are filled with absolutely every area of human life. And, of course, the Forex currency market did not stand aside – in its bins you can find a lot of secrets, and we will reveal a few of them in this article.

So, remember – the market is managed. For some, this is far from news, and someone may now hear about it for the first time. Let's find out what this means and what follows from it.

There are a great many different participants in the Forex market – from the average small trader to large funds and banks. All of them are United by the fact that almost all of them came to the market for profit. But, nevertheless, there are a number of significant differences and advantages of a major player, thanks to which he always wins.

A major player (also known as a market maker) has all the information about the market. He knows the number and volume of open positions in the market, has information about the liquidity available on the market, and knows all the macroeconomic news in advance. And most importantly, it manages the price for its own selfish purposes. How does this happen? Let's try to figure it out.

The market maker has enough money to move the price in the right direction for him through significant currency interventions in the market – so he takes the necessary part of the liquidity from the market and moves the price to the right point for him. Next, a major player makes a redistribution of their positions in the market and fixes the profit.

This scheme has many variations, but its essence remains the same – the market maker takes money from the market crowd, and this happens every market day for decades. The big fish eat the smaller fish.

Let's take a practical look at what happens at these moments, and also find out what it all gives us.

Everyone knows the expression "Trend is your friend", which means "Trade on the trend – and you will be happy". What happens in reality? As soon as we have correctly identified the state of the market (whether it is a trend, flat, consolidation, or channel), be prepared for the fact that the market will soon move to a different state. As soon as the crowd sees the trend and starts trading on it, the big player immediately turns the price into a flat, makes a deep correction or reverses the trend. If you have clearly defined the channel, do not rush to work in it, as there is a very high probability that the price will soon leave it.
Macroeconomic news. The Forex literature constantly says that it is necessary to take into account and analyze the news that comes out in the market. We will not list the news and the degree of their significance, but just look at them and find out how they affect the price from the position that the market is managed.

Imagine a situation in which many of you will probably recognize yourself. A trader is sitting at a computer, tracking the price movement of the selected asset, waiting for significant news. And then the news comes out, which directly screams that the asset price will grow. What is the result? The trader buys. And the price, accordingly, goes down. Familiar? Familiar. Have you ever had something like this? It was.

This is what is often overlooked when analyzing news, and what is usually kept silent.
The market maker uses the news for its own purposes. It is often on the news that the market phase changes: the trend changes direction, the sideways movement turns into a trend, and the channel breaks through.

Since big players know all the news in advance (whether it's macroeconomic indices or financial reports), they can take it into account in their game ahead of time. Namely, long before the news release, reallocate your assets in the right way and shift the price. Experienced traders in this case say: "The market took the news into account before it was released."

It follows that there is no good or bad news. News in the market exists to confuse you. Therefore, it is considered a big mistake to make assumptions about the direction of price movement based on the released news. Even if it's significant news.

And then many of you will ask: "What should we do in the end? How do you beat an opponent who knows everything about you and you don't know anything about their actions?» The answer is quite simple: you need to learn. You need to adopt the profitable trading strategies of the Forex Academy and learn from the experience of our successful traders.

If you want to become a professional trader, sign up for our special courses, attend our training broadcasts, join our social media communities, and subscribe to our You Tube channel, where you can watch weekly videos to improve the quality of your trading. Our resources provide the most up-to-date information about the Forex market and how to make a profit from it. Here our experienced traders share their many years of experience. Here you will find our latest developments: training courses, videos, training articles and many other useful information.

Don't let market makers lead you by the nose – find out about their true intentions thanks to trading volumes by signing up for the VSA 2.0 trading strategy course. Only there will you learn how to read the market correctly! The secret to successful trading is to always stay on the side of the big players. Knowing the effect of volume on price, You will be able to predict the price movement to enter and exit trades with the maximum profit.

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