Forum transfer: Submitted by Thexder on September 26, 2007 - 01:01.
I know in stocks there are market makers who have the capability of manipulating the value just a little to trigger people's stops set just outside some range, but how does it work in Forex?
When you read about the difference between forex and stocks in books they talk about the trillions traded daily and how it's virtually impossible for anyone to manipulate the price, but I've seen discussion about this happening anyway, so how does it work?
I am guessing each broker can somehow do some manipulation between the trader and the other exchanges they are dealing with, to manipulate things...so what are their capabilities and to what extent (just a few pips? Or if you have a stop like 10 or 20 or more can you still be falsely shaken out?)