Forex market maker method

A lot of forex traders usually learn their lessons the hard way. They will consciously face the market maker in a rather banal situation and after having had several failed trades, they will eventually go to the internet to search for the reason(s) why their trades failed.

As it seems, there is an enemy in the forex market which all the market participants must be careful of. This enemy is also known as the market maker. Contrary to what is obtainable by ordinary exchange speculators who earn on to the difference in price when purchasing and selling various trading instruments, the market maker solves another, a more global task. The forex market maker methods provides market liquidity and acts as a second party to the trade (when a counter party is missing). With a steady tendency, the forex market maker methods is supposed to work against the crowd.

The forex market maker methods are applied to sophisticated hedging systems and their transactions through various option strategies. For each trade, all work must be paid for and all the market participants must pay a market maker. This fee is usually regarded as a spread and not your stop-loss and the difference between the Buy and sell always moves in favor of the market maker.


To make profits with the forex market maker methods, there is need for you to remember that the forex market maker methods are not interested with the way and strategies with which the speculators enter into the market. It is largely interested in the area in which the trader’s money is concentrated and how to naturally get it. The maker method is also ready to make efforts and push the quotation in the zone where the largest volume of the trade operations is concentrated.

In the comparison of trade volumes, it is indicated at time intervals and can be concluded that at the present time, the price which is experiencing a downward trend is also approaching the level at which the increased interest of the market participants in the currency pair will be manifested. At this level, a large number of orders of both the buyers and sellers are placed. While the former will purchase the support level with a stop-order for sale below, the latter will sell in the case of a breakdown of support with a stop-order to purchase above.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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