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"Pseudo-brokerage" broker strategy

"Pseudo-brokerage" broker strategy occurs when all client transactions are blocked through foreign brokers with the certain time log. Briefly the essence of this technology can be formulated as follows:

  • After the opening of the client's position, it does not go at once to the client as profit
  • At "pseudo-brokerage" any position has moments during which a client is incurred losses
  • Accordingly, the dealing center has some profit on this position; provided, that this position is not blocked at the foreign broker

As a result of using such technology, a dealer's action will look as follows:

  • The client requests the quotation of the dealer, the dealer forms independently such quotation and gives it to his client
  • The client opens a position under this quotation
  • The dealer registers parameters of the open position and starts to wait for the moment when it starts to yield the loss to the client

When the dealer finds the size of the client's loss is sufficient, he blocks a client position at the foreign broker - fixing it this way so the dealing center will profit. Sizes of client losses fixed thus, as a rule, are not great. These sizes are expressed at all in pips and are direct in money. For example, the dealer can receive installation from a management to block a client position at achievement of the loss equivalent to several tens and hundreds of US dollars.

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