[FxFreedom]

Some people erroneously believe that OANDA might benefit from a client getting a margin closeout. The truth is that OANDA does not benefit at all. To the contrary.

Firstly, OANDA hedges its exposure for trades made by clients by making corresponding trades with third-party banks. As a result, if you lose money on your OANDA trade, OANDA loses a corresponding amount to its third-party bank.

Secondly, traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.

The bottom line is that each margin closeout harms a client and it harms OANDA. But it also protects clients from greater losses.

I just read that today from their website you know... and they are saying no one profits from margin calls and your account being wiped out for the fact they "hedge each one of its traders positions" with a bank, so if and when you lose, they lose that position as well. But this makes me wonder what I have been reading about market makers, that they need to have cash on hand to cover traders wins and losses, i never heard of them hedging and basically earning again off your wins and losses with a bank.

I am so confused someone please educate me on this

[tab]

Maybe I need a little education here too, I know Oanda has a dealing desk, and I know that means they pit you against other clients if they aren't putting your order straight through tothe market.

So what you or actually Oanda is saying is that they have a different way to put your order through, I'm guessing that let's them not have to have a huge amount of cash on had, which in turn makes them profit only if you are successful...? let me add dots and a question mark after that all hehehe

[sniper012]

it sounds a bit confusing. What I do know is that market makers make money as soon as you execute a trade. It doesn't matter if you win or lose.

[TopTrader]

That's right, the market maker just needs to keep clients coming in to keep up the charade to feed the winners which probably are far outnumbered by the losers resulting in profit for the broker woohoo

[sokerytomer]

I know that means they pit you against other clients if they are not putting your order straight through to the market. It doesn't matter if you win or lose.


closeouts

[Johnston]

yea oanda still profits on margin closeouts, just not as much as they would if you kept winning

[mk3fx]

This is so irresponsible of Oanda to say they profit just by having your account in their control, win or lose.

[Eddie98]

A margin closeout means you've lost so much money with open trades that you hit a certain percentage which is in their terms and conditions and they close the trades automatically at a huge loss. So the morale of the story is, USE A STOP LOSS!

[jugarde]

Oanda profits either way... just not as much as if you win for a few days and lose it all compared to win for a few months then lose it all

[IIO]

I know that means they pit you against other clients if they are not putting your order straight through to the market. It doesn't matter if you win or lose.


closeouts

http://www.fashionbrandsdistribution.com/???

[IIO]

I know that means they pit you against other clients if they are not putting your order straight through to the market. It doesn't matter if you win or lose.


closeouts

http://www.fashionbrandsdistribution.com/???

[anders]

Well, they get to gobble up your deposit, are they trading on a real market or not? is it a bucket shop or not? many factors determine that

[skynet]

A broker wouldn't lie to you... no not them.

[pipMasterG]

A broker wouldn't lie to you... no not them.

lol... yea Oanda is desperate for business, whether they are good or not is up to you.