We continue the conversation about the most interesting and unique services from the company Larson & Holz. It should be noted that the company has developed many services that are designed to make the trader’s work not only more perfect, but also easier. The company offers its clients a lot of video materials not only for the forex market, but also for other financial markets.
Let’s start with a unique option – zero spread. Let’s remember which of us at least once opened a warrant with a zero spread. Maybe someone did this, but this is a rather rare phenomenon. After all, we all know that the spread, even the minimum, will still be greater than zero. And this is also true, as well as the fact that the prices of BID and ASK are very rare at the same level. Well, now about the zero spread. These are the moments when the price of buying and selling is at the same level. But, it concerns a certain instrument. For example, EUR / USD is considered. The selling price is at 1.20000. At a time when the purchase price gets the same value, we can say that there is now a zero spread on the market. And this is the perfect time to open a deal. Opening the order, the trader gets a huge advantage, because now you do not have to lose profit equal to the size of the spread. The order opens not in the negative zone, as usual, but from scratch. Brokers have an unspoken agreement. At times when there is a zero spread in the market, orders are executed instantly. But we know that the value of the spread is the broker’s profit. And we understand that the zero spread increases the trader’s profit. It would seem, why should a broker execute an application for opening a deal at such a time. A broker can easily slip during this period of time. Undoubtedly, that would be done by that broker who will never miss a few points of profit. But the management of the company Larson & Holz initially was not going to extract this kind of profit at the expense of losses of its customers. Various breakthroughs and price slippage, you can call it anything. That’s just the company does not sin. There is a zero spread on the market, and there is an application. Hence, the order must be executed precisely at the price at which the application was received. Neither the point anymore, nor less. And it is good, if the trader expects for the intermediate term of the open warrant. Spread, sort of like, and not a hindrance. But if a trader practices scalping, and there are many such, or aggressive scalping, when each item counts, what then? Losses. But under conditions of zero spread there is no loss. Each item that went to the spread, now goes to the profit box. Naturally, scalpers will appreciate it.
What is a zero spread, we understood. But what is the ratio of zero spread to brokers. The most direct. Probably very few people know, but the brokerage company Larson & Holz implemented the ECN system. The system itself is not new, and brokers are often used. But the FIX protocol, by which the ECN system works, has been used by the company for a long time. Briefly about the FIX protocol. What does the trader give this system with this protocol. It stands for Financial Information eXchange. That is, the protocol of data exchange between dealers and brokers. This is the standard that is currently used to instantly transfer data from any financial market to the dealer, and then to the broker. Now we understand, the faster the data transfer, the faster the broker receives data from the market. Accordingly, the trader receives the best prices. Thus, the company Larson &Holz has achieved that the trader is given quotes even in the moments of zero spread.
And now consider the duration of the zero spread. We all know that the market situation changes every second. This means that the zero spread can not last for a long time. Most brokers try to bypass this period. And if there is no way around, the period is simply shortened. But the company Larson & Holz in greed can not be reproached. The company’s management did not engage in any cuts or rounds, but instead tried to maximize the time of the zero spread. It even went so far that the zero spread can last for several hours. More, alas, there is no possibility. But these few hours are a real progress for the trader. Larson & Holz has the best performance in the field of simplified trading.
And now consider the ECN system, which works on the FIX protocol. The company is the leader among brokers using this system. As mentioned above, the system was introduced quite recently. ECN – Electronic Communication Network. Execution of orders bypassing the broker. Bypassing this is understandable, but in fact ECN-brokers still compose an application from each individual trader. But it is based on a counter application from the market. In fact, brokers give traders changed prices. The change in price is due to the loss of time during the transfer of data. But traders connected to the ECN system with the FIX-protocol, get real market prices. The data transfer is instantaneous, and the price does not have time to change. Think about what speed a broker should provide so that a trader receives a market price. This in turn leads to the fact that the moments of the zero spread can occur more often than usual. Well, those customers who do not know how to connect to the ECN system with the FIX-protocol, Larson & Holz crypto employees will help. As well, and on any other issue.