hi guys, i just completed reading the book flashboys and it got me thinking. what actually happens when i press buy/sell on my platform?
my broker places its client's fund in segregated bank accounts from its own.
So say for example, if i have a deposit of 200k. and i were to buy eurusd, 1 lot. leverage 1:1 for simplicity purposes, the signal goes to my broker's end and then to the bank which is holding my fund and then converts 100k of my money into eur and when i close that position after say profiting 1k, the bank changes it back and my account balance with the bank is now 201k? Or does the chain of events just stops at my broker.
is my understanding of how it works correct? if not. please someone with prior knowledge shed some light.
Much appreciated.
my broker places its client's fund in segregated bank accounts from its own.
So say for example, if i have a deposit of 200k. and i were to buy eurusd, 1 lot. leverage 1:1 for simplicity purposes, the signal goes to my broker's end and then to the bank which is holding my fund and then converts 100k of my money into eur and when i close that position after say profiting 1k, the bank changes it back and my account balance with the bank is now 201k? Or does the chain of events just stops at my broker.
is my understanding of how it works correct? if not. please someone with prior knowledge shed some light.
Much appreciated.