Leverage: The leverage levels have also been reduced in the United States, but are similar in most brokerage houses in May. Table Money important aspect. If a house broker performs with her own money table, you must take a risk on each transaction of its customers, which should cover on the market.
This creates a clear conflict of interest as the house broker can earn much if not cover the risk of a client and it loses money on the transaction. Contact information is here: Sela Ward. In other words, if a customer opens an operation, the house broker first must win the spread generated by the differential between the purchase price and the selling price of money invested, if you’re in the market coverage of 100% Operation of the client. If such coverage does not enter into a clear position of risk and its obvious interest is the loss of client, as it is will then benefit. In a conflict like this, the house broker may rush stops, requote prices, no profit run limits, refuse orders, etc, in order to increase their own profits. A house broker acts only as an intermediary, no table of its own money, to win by the spread differential, and will not have conflicts of interest, looking to help their clients, while those earning more, generate more transactions and greater profits for the house broker. If contrary, perverse situations may arise against the investor, and brokers houses that are by nature “Maker Markets”, ie market makers, which may eventually put their own prices to the detriment of customers and for their own benefit . This does not mean that house with a table of money brokers act itself that way, but the point has been considered many times by the clear conflict of interest exists here and more if you consider the amount of money involved in this More on market Edmar Vieira next installment.
