Being an investor means you have to take care of many details. However, there are specific dangers that you may not be aware of. Unfortunately, graph manipulation is one of them. Here you can understand what it is and discover the things you can do to avoid suffering due to the unethical behavior of some brokers.

Forex brokers we recommend in your region

See the full list of brokers


Chart manipulation consists of all the practices that individuals use to influence the behavior of other investors.

Most people attempt to manipulate charts to: influence supply and demand for a particular product. This happens a lot with currency pairs.

The short answer is “yes,” but it’s often scary to hear, especially if you’re a first-time investor because you might not know who to trust or what to believe.

Although brokers can theoretically manipulate charts, not everyone does. Few people engage in these practices.

Understanding what chart manipulation is and how it occurs is therefore essential as it will allow you to identify it when you invest and help you avoid some of the risks.

It is also important to know that multinational corporations and central banks also influence the foreign exchange market. These institutions buy and sell on a large scale, which greatly affects the prices and future of the currency.

However, banks and corporations intend to benefit their country, and that is quite different from wanting to harm a particular broker, which some unethical traders sometimes try to do.

If a country’s economy is going through an unstable moment, the central bank can buy or sell through Forex. However, even in this scenario, it does not necessarily affect the individual. Moreover, official institutions that often manipulate the tables in their favor do not engage in illegal or illegal practices.

As already mentioned, chart manipulation is possible and this is something brokers do. Below are the most common practices people use when they want to turn the odds in their favor:

Sometimes market conditions are volatile, so the price of a currency can be different from what people thought. The term “slippage” defines this gap between currency pairs, which often happens to many traders.

In some cases, this can be dangerous because some brokers may blame the slippage, even if the price difference is due to something they did. Therefore, you should be careful if this becomes a pattern and starts to affect your position.

This strategy is illegal and illegal and consists of placing fake orders in a specific currency, which creates fake interest.

As a result, people can lose a lot of money because those who placed orders are not interested in buying.

As a result of increased demand, the price will undergo artificial inflation. This in turn attracts more investors. However, the broker cancels these orders before they are executed.

Spoofing breaks the law, so it has legal consequences. It is a direct change in the Forex market. Therefore, it could have serious consequences for the investors involved.

If you know about trading and investing, you probably know that this market is very volatile and unpredictable.

Like many traders, when you see a low spike, it’s not a surprise, right?

However, some unethical brokers take advantage of this process and devise price spikes that lure unsuspecting traders.

Once the buyers place their order, they will see the price move in the opposite direction, resulting in a significant loss.

Brokers can only create false spikes on individual accounts. Therefore, the way to resolve this situation is to compare your account with another person’s account. You can also use charts provided by third-party Forex vendors.

This is a common practice when investing in Forex. However, unethical brokers take advantage of this and try to trick others into making specific decisions that will benefit them.

When you stop hunt, brokers instruct others to take a specific trade so they don’t lose more money than they can afford. After the stop, it pushes the prices to move them in another direction.

Stop hunting is something that often occurs when the market is extremely volatile. So it’s also a practice you should be wary of.

Unethical brokers also use front running, which consists in observing the behavior of another investor and making decisions faster than them.

In other words, if a broker says he intends to place an order, the other will submit it immediately.

Placing a trade in front of another trader not only manipulates the charts but also damages the individual’s position. Therefore, it may result in negative results for the participating broker.

Although there are unethical brokers, you can use free tools and engage in practices that will allow you to protect your positions and have a better chance of achieving the results you want.

You can use multiple demo accounts and compare exchange rates. Therefore, you can avoid dealing with brokers who engage in stop-hunting.

In addition, you can compare the prices shown on the company’s terminal with the prices on Bloomberg and Reuters.

If you look on the internet, you can probably find free tools that promise to help you manipulate charts and change things to your liking.

However, you should not use them. Otherwise, you risk negative results or, at worst, legal problems.

Instead, it is vital to protect yourself. In order to do so, you need to be aware of the various strategies that unethical brokers use and do what you can to avoid them, even if it means using different accounts or comparing prices many times before closing a trade. .

Unethical brokers do exist and if you are in this industry you are prone to encounter them. Now that you are aware of some of their tactics, you can use different strategies to protect yourself.

Yes, a broker can manipulate the market by engaging in unethical practices that often harm other traders.

Unfortunately yes. Some brokers manipulate the charts, for example, to make others believe that the top is low and get them to buy.

Central banks, multinational corporations and brokers all influence the market. However, the first two do not do this with the intention of harming the individual, which is what unethical brokers do.

Yes. As with anything else in the Forex market, MT4 is prone to manipulation. Traders must therefore be cautious and keep their eyes open.

There are various ways to find out if a broker is against you, for example by comparing charts and prices with other sources.

Each broker trades in their favor, so eventually some of them will be against you. However, there are specific brokers whose sole purpose is to exploit and harm others, so it is these individuals that you should be wary of.

Brokers and institutions manipulate the markets, but they do it differently. The latter focuses on growth at the national level, while the former often wants to harm individuals for its own benefit.

Yes, many brokers manipulate because they want to achieve their goals at all costs. They also don’t care about hurting others.

Source Link