THIS MARKET IS AS BROKEN AS ONLY IT COULD BE!!









The problem we discribed already 8 years ago again and  again, the loss in traded volume, became a serious problem for nearly all markets.
Since the end of the so called Financial Crisis back in March 2009, more and more Banks closed their own books and stopped trading, the way they  have always done it. The losses were to big to accept them being part of it. You remember very well all those guys with severe losses, such the likes of Jerome Kerviel who lost only in 2008 5 billion Euros for his employer Societé Général . Or  remember the well known Nick Leeson, who brought Barings Bank back in 1995 with his wrong Nikkei positions, to fall abroad. The problem in his case was the fact that everybody knew his positions and so they started trading against him. In 2008 was clear that no Bank and especially​ no investor would accept it any longer. And so they oficially declared the stop of the own trading strategies. And you could see it from the very first moment on. The more Banks stopped trading in the following years the more the liquidity in the markets was drying out. Trading became more and more to a high risk game. And yes the seizes are limited and this is by far the biggest risk to investors. Especially when it comes to ETFs or CFDs etc. Especially CFDs are played in market niches were the broker knows both sides the buyer and the seller. This doesn't exist in normal Future markets. There the Clearinghouse knows both sides but surely not the Broker.
So the broker can decide which one should win as and which should lose. 😀
So buy only markets with high volume, such the likes of equities.

Kommentare

Beliebte Posts aus diesem Blog

Gold top - Dax flop