Market Maker in Forex

Market Maker in Forex

Term market maker aisay individual ya firm ko refer krta hay jis main two sides market ko quote krta hay Kisi particular security main jis main hr Kisi Kay market size Kay according bids aur offer diay jatay Hain.Market Makers market depth aur liquidity provide krta hay aur bid ask spread Kay difference se profit generate krta hay.Wo apnay accounts Kay liay bi trades krtay Hain jis ko principal trades kaha jata hay. Key Takeaways of Market Makers Market maker aik single person participant ya firm member ho sakta hay Jo apnay account Kay liay securities buy aur sell krta hay. Market Makers market ko liquidity aur depth provide krtay Hain aur is Kay sath sath bid ask spread se profit generate krtay Hain. Brokerage Houses market Makers ki most common type Hain Jo Kay investors ko purchase aur sale solutions provide krtay Hain. Market Makers ko assets hold krne Kay risk per compensate kia jata hay q Kay security purchase aur isko dosray customer ki sale krne main iski value Kam ho sakti hay. Broker aik dosray se compete krtay hain specially post bids main aur ensure krtay Hain Kay wo accurate report hui Hain. Understanding Market Makers Market Makers mostly brokerage houses hotay Hain Jo Kay financial markets ko liquid krne Kay liay investors ko trading services provided krtay Hain.Market Maker individual trader bi ho sakta hay jisko local kehtay Hain.Market Makers ki majority large institutions Kay behalf per Kam krti hay jis ki waja size of securities hay Jo baray volume main sale and purchase hota hay. Hr Market Maker guaranteed number of shares Kay liay quotation buy or sell krta hay.Jab market buyer se order Recieve krti hay to wo apni inventory se shares sell kr detay Hain jis se unko order complete krne main help milti hay.Market maker Kay liay prices quote krna compulsory hay jis per wo buy ya sell kray ga. Market Makers ko volume bi quote krna hota hay jis per wo trade krien gay aur is Kay sath time frequency bi quote krna ho gi jis per wo best bid aur best price offers kr saktay Hain.Market Makers ko market outlook main tamam parameters ko hamesha follow krna hota hay.Jab Market erratic ya volatile ho to bi market Makers ko discipline show krna hota hay ta Kay transactions smoothly Hoon. Market Makers ko holding assets risk per compensate kia jata hay Jo sab se best bid ya offer compete krta hay wo future orders lay ga.Is main risk bi hota hay jis main asset purchase aur next party sale kay darmian price difference a sakta hay.Aur Market Makers bid spread difference se profit letay hain isliay high volume trading aur small spread daily bara profit margin day sakta hay.

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Market Makers

Financial market ek mushkil nizam hain jahan traders munafa kamane ki koshish karte hain. Jo cheez aap chahte hain, usay hasil karne ke liye, aapko rah mein aane wale rukawaton ko kaise paar karna hai ye seekhna chahiye. Aap ye sirf tab kar saktay hain agar aapke paas bharose mand malumat hai.
Panic ka sabab jab (aap sochte hain!) ke qeemat "sahi taur par" behave nahi karti aur achanak palat jati hai, tezi se qeemat barh jati hai, ya gaps aajati hain, to ye hai ke aap financial markets ka kaam kaise karta hai, iski be-ilmahi hai. Aapko wazeh tor par samajhna chahiye ke aapne "Sell" ya "Buy" button daba diya hai to iske baad kya hota hai, aapki order kis par lagegi, isko kis qeemat par execute kiya jayega, aur ye qeemat kaun aur kaise mutayyan karta hai.



Market maker aik mali idara hai jo exchange ke sath aik khaas moahidah karta hai, aur kuch faiday ya spread/commission ke hisse ke liye is zimedari ko qubool karta hai:

• Kisi peroid tak (takreeban 70% trading tak) buy karne aur sell karne ki qeemat ke darmiyan farq ko (minimum spread) aik muttafiq range ke andar qaim rakhna;
• Market ki mustiqil liquidity ko barqarar rakhna;
• Dosray services farahem karna jese ke market trends ki mushkil analysis.

In mein Central banks (jinhon ne financial interventions aur interest rates ke zariye market ko asar andaz banaya), commercial banks (jo hamesha bade volumes mein currencies ko convert karte hain), hedge funds, multinational corporations, bade brokers, private aur corporate players shaamil hain - jo bhi itna munafa kamane ke liye kafi mal o dolat aur technical salahiyat rakhte hain ke market par asar daal sake.
Ye wahi hai jis se ek mamooli trader tab interact karta hai jab woh trade karne ki koshish karta hai: market maker market price ko banaata hai (quotes deta hai), aur market user price mangta hai (price leta hai) aur agar usay price theek lagti hai to woh deal karta hai. Exchange trading ke hissay ke taur par, market maker hamesha market ke dono taraf mojood hota hai, buyers ki tarah aur sellers ki tarah. Inhein do types mein taqseem kiya jata hai unke asar ki level ke mutabiq:

1. Institutional: Ye idaray hain jo exchange ke sath muttafiqat ke andar supply aur demand, prices, aur trading volumes ka balance banaye rakhte hain.
2. Speculative: Participants khud large volumes ke traded assets ke zariye price fluctuations par apna asar daal saktay hain.

Market Makers Ki Main Functions

Market makers, chahe newbies inhein jo sharks samajh rahe hain, unki bunyadi zemadari unki activity ki liquidity ko qaim rakhna hai aur modest deposits walay traders ke liye trades ko support karna hai. Ye unhein mumkin banata hai ke woh maqool waqt mein maqool qeemat par transactions karain. Is tarah, market makers ki bunyadi zemadariyan ye hain:

1. Quotes ko aik mukarrar range ke andar rakhna.
2. Zarurat par mutabiq additional liquidity farahem karna.
3. Price gaps se rokna.

Apne maqasid ko hasil karne ke liye, market makers moahidah zimadariyan ada karte hain: woh shares, futures, ya currencies khareedte hain aur bechte hain, price fluctuations ka andaza lagate hain, aur liquidity ko barqarar rakhne ke liye lot volumes ko regulate karte hain. Perform kiye jane wale functionality ke taur par, market makers do types mein taqseem kiye ja saktay hain:

• Order Takers: Woh client ki order ke mutabiq as an intermediary trade karte hain.
• Order Makers: Woh market ko dekhte hue kisi khaas stock ke liye forecast banate hain.

Market Makers Kaise Kaam Karte Hain

Market makers rozana bade numbers mein transactions karte hain, exchange assets ki buland liquidity ko barqarar rakhte hain. Is mamooli kaam mein shamil hai:

• Client ki darkhwast par assets khareedna aur bechna.
• Spread par munafa kamane ke liye brokerage karna.
• Currency trading.
• Market ke sath muqablah - jab prices barh rahe hain to shares bechna aur ulte halat mein, jab prices gir rahe hain to bechna, taake supply aur demand ka balance qaim rahe.

Isi doran, exchange par hone wale maahol ki analysis traders ke liye horizontal variant ki nisbat mein vertical hoti hai. Market makers ko order book ka access hota hai, jahan unhein sirf buy aur sell operations nahi dikhtay, balki pending orders, Stop-Losses, aur Take-Profits bhi dikhtay hain. Unhein market trends, potential earnings, aur stock ki reliableness ka andaza hota hai, aur woh chote dealers ko withdraws ki information dete hain. Bids ko ekaththa kiya jata hai aur ek trade aisi mabni jati hai jo sab parties ke liye munafa bakhsh ho. Agar exchange par koi munasib buyer ya seller nahi hota, to exchange ke sath jo company moahidah karti hai, woh iski jagah lena wajib hai.

Major Market Makers

Aik famous player mein se aik NASDAQ (National Association of Securities Dealers Automated Quotation System) hai. Iske 500 companies ke members hain jo stock markets par liquidity regulate karte hain. Forex market mein, duniya bhar ke sab se bare banks market makers ke tor par kaam karte hain:

1. Deutsche Bank – 19.3%
2. UBS – 14.85%
3. Citi – 9%
4. Royal Bank of Scotland – 8.9%
5. Barclays Capital – 8.8%
6. Bank of America – 5.29%
7. HSBC – 4.36%
8. Goldman Sachs – 4.14%
9. JP Morgan – 3.33%
10. Morgan Stanley – 2.86%

Ye lower-tier participants (liquidity providers) ke sath interact karte hain, aur ye apni taraf se brokerage companies ko mukhtalif quotes farahem karte hain.
In banks ki wajah se jo buland liquidity milti hai, iski wajah se currency pairs ke spread ko paanchwe decimal place tak kam kiya ja sakta hai.

Market Makers Aur Spread

Market ka koi haq nahi hai ke vo nuksan de: khareedne ki qeemat bechnay ki qeemat se zyada honi chahiye. Lekin agar, masalan, asaasi khabrain, maali ya siyasi waqiat ke baad market mein khareedne ke liye bohot ziada darjat hai, magar bechnay walay kafi kam hain, to phir market maker kya karta hai?
Sahi baat hai, market maker spread ko adjust karta hai ("widens"), takay vo offered ask prices ko "catch" kar sake. Is natije mein, bid market maker ki taraf se execute hogi, lekin qeemat client ki umeed se kafi zyada kharab hogi. Ye fraib nahi hai, balki ek dafa phir, ye hamare paise se bhara hua hai. Mushkil haalaat mein market maker hamesha hal nahi kar sakta aur bade nuksan uthata hai – yaad rahe 15.01.2015 ko Swiss franc ka crash test.
Spread market ki situation ke mutabiq badalta hai. Spread ki kami (narrowing) hoti hai jab bids ki ziada miqdaar hoti hai (high liquidity) aur spread ki izafah (widening) hoti hai jab counter volumes ki kami hoti hai. Exchange spread hamesha dynamic ("floating") hota hai aur supply/demand ka balance dikhta hai, fixed spread sirf bohot hi liquid instruments ke liye ho sakta hai. Jitna zyada market maker kisi asset ki trading mein shamil hota hai, utni achi uski price hogi. Masalan, exotic currency pairs ki spreads zyada hoti hain sirf kam demand ki wajah se.

Market Maker Market Ko Kaise Dekhta Hai?

Hamara conflict market makers ke saath tafawut mein nahi hai, balki iske direction mein hai. Aam trader horizontal price analysis perform karta hai, jo ke future dynamics ko maqool qeemat ke andar tajaweez karne ki koshish karta hai (indicators, levels, patterns ke zariye). Horizontal analysis sirf peechli qeemat history ke saath kaam karta hai. Trader nahi dekhta ke market mein kya ho raha hai aur qeemat "indicator ko follow nahi karti", is liye saari peshgoiyan nakam hain.
Aur market maker ko farq nahi parta ke RSI kya dikhata hai, MACD kahan ja raha hai, aur kya "Head & Shoulders" bana hai ya nahi. Pechli qeemat abadi ko amood e jumud nahi karti, balki bas iske direction ka andaza lagane ke liye data deti hai. Market maker market ko vertical taur par dekhta hai aur use analyse karta hai: vo price, volume, direction, order type, Stop Loss/Take Profit, accumulation, aur price levels ke areas mein volume ki dynamics dekhta hai. Market maker market aur pending orders (jise "Open Interest" kehte hain) ke saath sab parameters ke sath kaam karta hai: position ko kaise aur kab close karna hai agar positive ya unfavorable result hota hai. Ye information kuch VIP clients ko market makers dene ke liye bhi hosakti hai - ye sab kapital ke amount par depend karta hai. Market makers direct market par asar dalne ke ilawa, financial, political, aur technical kisam ke insider ko bhi actively use karte hain.

Market Maker Information Ko Kaise Use Karta Hai?

Market price ko palatna itna aasan nahi hai, lekin yaad rakhen: market maker market movement ke dono sides par trading interest "dekh sakta hai". Market mein "sahi" qeemat par dakhil ho jane ka mauka hota hai, jhooti trends aur ghair mutawaqqa correction banane ka bhi mauka hota hai.
As a rule, agar koi bara player ki darkhwast par, market maker price ko aik strong level tak push kar sakta hai, jahan par, masalan, pending orders ya bade Stop-Loss volumes mojood hain, aur uss order ki triggering kar sakta hai. Iska natija hota hai ke zaroori direction mein mazeed tezi aati hai. Yani, ek taraf game crowd ke khilaf kheli ja rahi hai, aur doosri taraf, market maker ko abhi bhi choti "retail" volume ki zarurat hoti hai price ko apne faide ke liye push karne ke liye.
Samajhna chahiye ke Deutsche Bank jese bara market maker ko chhota bids ke khilaf kaam karne ka koi maqsad nahi hai - iski hamesha bohot ziada volume ke operations ke bajaye faida hota hai. Lekin jab liquidity chhota market maker ko bardasht karne ki koshish karti hai, to usmein bas paisay ki kami ho sakti hai bids ko overlap karne ke liye, aur yahan shuru ho jata hai: requotes, lost connection, ghalat quotes, "lost" bids, aur doosre mushkilat.
Jese ke kisi bhi maali khilari ki tarah, market maker ko apne risks ko hedge karne ka haq hai, masalan, futures ya options ke regular operations ke zariye. Is tarah ke trading ke algorithms aur tafseelat mushkil aur hamesha qanooni nahi hoti, is wajah se price manipulation ke iraday aur afwahen bhi hoti hain. Haan lekin market maker jo dikhai deta hai, vo kisi bhi waqt qanoon se muktalif nahi hota, in operations ko international aur national regulators jese ke NFA, FSA, SEC, aur CFTC strict taur par regulate karte hain.

Theoretical Market Makers Ki Kami

Jese ke aapne hamari article se samajh liya hai, market maker ka kaam ye hai ke vo private traders ko almost har market movement ke moment par kisi bhi asset ko khareedne ya bechne ka mauka de, chahiye vo kitna bhi tez ho ya "unfavorable" ho. Ye vo intermediaries hain jo market mein forcefully aur hamesha transactions karte hain, market ki liquidity ko barqarar rakhte hain.
Masalan, agar in intermediaries na hon to jab qeemat barh rahi hoti hai ya gir rahi hoti hai, to apni order ke liye counter bid dhondhna bohot mushkil ho jata. Jab strong uptrend hota hai to zyadatar traders long position mein dakhil ho jaate hain. Lekin in trades ko execute karne ke liye, market mein vo players hone chahiye jo har price level par uss asset ko bechne ke liye tayyar hain. To phir jo log income generate kar rahe hote hain, unko vo kaun bechega agar price tezi se badh rahi hai?
Naye players bas vo quotes ke liye jo unko apne liye maqool samajhte hain, dakhil ho sakte hain. Vo mark par wait karna padta hai jahan buyers apna faida fix kar rahe hote hain. Trend miss ho jata hai, chart palat jata hai, aur trader market ke principles se nakhush ho jata hai. Isi tarah se, market makers vo nahi hain jo "insider information" rakhte hain aur "market ko move karte hain", balki vo hain jo basically retail traders ke liye online trading ko comfortable aur mumkin banate hain.

Conclusion

Financial market taqat aur kamzor ke darmiyan muqabla ke bais par hai, lekin samajhdar trader ke liye bade players dushman nahi hain, balki bas zyada tajaweez rakhte hain. Waqt ke sath, market maker ke saath moassar "taawun" ke mechanism ki samajh aur experience aata hai, jo ke chhote deposit ke sath bhi mustawar munafa hasil karne ki ijazat deta hai.