About floating point difference/fixed point difference, STP/ECN, and why MT4 can also support BTC

Floating spreads and fixed spreads are problems that many traders are easily misled. Because when some peers attack us, they will say that Tri is a customer loss platform, because it is a fixed spread, which liquidity provider do you think has a fixed spread?

The authoritative answer brought by Chen Sir is that this is still a wrong proposition. Because the essence of a liquidity provider is a market maker, including when you go to the bank to exchange RMB for US dollars, your counterparty is the bank. Many years ago, traders were fixed spreads + foreign exchange four-digit quotations. The generation of five-digit quotations + floating spreads is only for market makers to get greater protection, avoiding delayed scalping transactions and expanding spreads To achieve some risk control. In fact, ECN has no necessary connection with market makers or STP. The ECN model is a model that combines fixed spreads + floating spreads. The fixed part is realized through handling fees, and the spread is still floating.

How are the fixed point difference and floating point difference generated in MT4? There will be screenshots below, which are our data source products and products provided to customers. The data source product itself has a floating spread, so the default spread off means that the quotation of the data source product will be based on the selling price + buying price provided by the current data source, and the products provided to customers are fixed spreads or floating spreads only because we are providing A default point difference is set in the customer's product. Once we change the default value to 0, the product will immediately become a floating point difference.

Chen Sir's explanation, whether everyone understands it immediately, in fact, many things are not so mysterious, and the essence of the facts is often extremely simple. Why are there fewer and fewer traders with fixed spreads? What I need to say here is that Tri cannot maintain fixed spreads without Sir Chen, because fixed spreads are an operating mode that cannot protect traders through spread expansion. , he only benefits the client. Therefore, if a trader is a pure market maker and does not have an excellent quotation data source and a particularly excellent server communication arrangement, it is difficult to provide a fair fixed spread model.

Doubts about our newly launched BTCUSD product and customers. The first thing to explain is that MT4 is actually a trading software, as long as it is connected to the data source, it can operate according to the settings. The simplest example is that Tongdaxin is a Chinese stock software that can support quotations and transactions of all stocks, and MT4 is also possible, so BTC can also be traded on MT4. Bitcoin is a virtual currency that is not based on national reputation endorsement but is entirely based on blockchain ledgers. Because the blockchain can trace any transaction, the birth of any currency to the current record, and Bitcoin is the first currency used in blockchain technology, so it has become the spokesperson of digital currency. Whether you hold Bitcoin as a part of your assets depends on your personal preference. Due to the nature of Sir Chen's work, he often receives Bitcoins paid to him by other companies. Chen Sir will use the cold wallet to keep his bitcoins. He said that this is the safest part of the current assets. Even if there are any extreme situations, the BTC assets will not be lost, because the blockchain ledger of bitcoins has been accompanied by satellite launches. Space, that is, the earth does not exist, and his bitcoins will still not disappear.

The article is reproduced from [Tuoli]