short, page-44

rom, the mm's do add some additional volatility to the market volatility so if you're an experienced market watcher and trader and then move to an cfd provider, I think you'll find that your stops get taken out much more often. I found that initially. In their reasoning, extra volatility means extra risk to them, so they pass on that extra risk to you, which means that market volatility becomes market volatility x 1.2 or something like it, so if you're used to trading the real market using stops appropriate to the real market then you get stopped out much more often once you've switched to a cfd provider. On top of which, they already know where the majority of stops are because they are also the broker and know where the majority of hard stops are and can guess that there are a lot of mental stops at the same place. Its like brokers passing on to hedge funds the details of aggregated clients positions, so the hedge funds can then play against the brokers clients. It happens. With a cfd provider, they are the hedge fund playing against their own clients. its an inevitable aspect of being a cfd provider. i've raved about this stuff here many time. The only reason to use a cfd provider for index trading is if you haven't got the money to trade the real market..

the only way of beating them that I've found is to fade rallys if long and fade declines if short, for exits that is. But i'm moving back to the real market, fug the mm's..