JillyB
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Maybe forex price activity is only really affected/determined by the institutional (& governmental) transfer of money :idea: .![]()
I can understand why the rise of the home based retail fx trader may not make a difference, because if you trade with a retail broker, you're not trading on the underlying spot fx exchange (be it bloomberg, reuters, EBS etc.)
Therefore it's more or less the same as the concept of spreadbetting Vodafone with CMC - we can see that this is not going to affect the underlying exchange traded Vodafone price activity.....you're merely "betting" on the movements of the underlying instrument based on the bookies prices.
However, if the SB CO./retail spot fx broker hedged trades in the same underlying market, this could have an impact on the underlying.
If you open an institutional account with FXCM, (i think) they say your orders are placed on the underlying exchange, in their name. So i can see why this model of trading may possibly have an effect on the underlying....
Just out of interest FXCM do a Sentiment Fund as well - this is supposed to follow the sentiment of all there traders on various currencies - whether there are more favouring short than long positions etc. They say they can do this as they have so many people trading with them it gives them an accurate overview of the market.