Structural problems in financial markets that hold your trading back.

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trader's trades get replicated

How traders’ trades get replicated for investors (13)

In previous episodes we talked about how liquidity aggregation works at Darwinex, how our incentives are to always get you the best price and how we are a pure broker and not a market maker.

In this episode we talk about the process by which traders’ trades get replicated for investors in traders’ DARWIN.


Fundamentals of DARWIN investing

Register for this webinar if you want to master the basics of DARWIN investing.


After touching upon some basics – both traders and their followers/investors trade with our with FCA regulated brokerage, followers replicate, but do NOT know, underlying trades thus cannot bypass payment of 20% success fee of the trader – we discuss the following:

  • Sequence of the replica process.
  • Divergence (difference between leader & replica price).
  • Capacity of the trading strategy to get replicated bu investors – the more market liquidity you take, the more you move market price against you).

Every strategy gets to a point where it can’t take more capital. That’s when it’s reached full capacity.

In the case of news trading in retail, it’s tens / hundreds of thousands before liquidity providers refuse to price either you or your broker.

Or we can go all the way up to Bridgewater Associates, Renaissance Technologies etc., given that some of the biggest asset managers stop accepting new investors. As a matter of fact, some of them have even STOPPED accepting investors altogether!

In this episode, you’ll be also able to understand:

  • How we measure capacity.
  • How we provide traders with choices when managing their DARWIN’s capacity.
  • How traders can make the most of the market, i.e. encounter te optimal debt vs. capital mix (how much leverage do you borrow to boost return on your own capital and how much investor capital is ideal to top things off on the above).

Listen to the episode


Fundamentals of DARWIN investing

Register for this webinar if you want to master the basics of DARWIN investing.


Liquidity aggregation

Liquidity aggregation: where the rubber hits the road (12)

In this episode we talk about liquidity aggregation at our brokerage. We’ll explain how the Darwinex broker operates, specifically where does the price you see and where the price you get come from when trading the assets we offer.


Check Out All Assets Currently Offered at Darwinex <https://www.darwinex.com/spreads?utm_source=Darwinex%20site&utm_medium=Blog&utm_campaign=Launching%20DMA%20Single%20Stock%20Offering>


We’ll cover liquidity aggregation for

  • Exchange traded assets: Futures / DMA Stock CFDs
  • OTC Assets: FX, Index CFDs, Commodity CFDs

We’ll help you get the terminology right regarding:

  • Last-look vs. no-last-look
  • Asymmetric markets created by last-look practices
  • Prime Broker
  • Market making

Listen to the episode