Dealing Desk - what does it mean
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Thread: Dealing Desk - what does it mean

  1. #1
    Hi everyone,

    Could anybody share what is the significance purpose of a dealing desk ? Particularly when brokers imply no table.

    Thanks.
    Mike

  2. #2
    The merits of a dealing desk and non-dealing desk are debated on this forum at length. Quite simply, a NDD is a brokerage arrangement in which the broker passes your transaction on into the market instead of taking the other side of your place as is typically performed in a dealing desk arrangement. Most NDD arrangements simply pass your transaction to a larger broker or liquidity provider who then takes the other hand. In the table environment there is rarely a person examining your mini-lot(s) to find out what he can squeeze out of you.

    The simple facts are that somebody always takes the other side of your positon. That is why it's called trading. There is a common belief among a few (and they'll be here shortly) that brokers will manipulate prices to give you a less than equitable deal if they're on the opposing side. In my experience, many of these individuals have to test to root cause of their trading failures and have chosen to focus their search for their replies. It is a phase most all of us undergo.

  3. #3
    Quote Originally Posted by ;
    The virtues of a working desk and non-dealing desk are debated on this forum at length. Quite simply, a NDD is a brokerage arrangement where the broker moves your trade on into the market rather than taking the other side of your position as is typically performed in a working desk arrangement. Many NDD arrangements simply pass your trade to a bigger broker or liquidity provider who then takes the other side. In the dealing desk surroundings there is rarely a person examining your mini-lot(s) to see what he can squeeze from you.

    The simple truth is that somebody always takes the other side of your positon. That's why it's called trading. There's a common belief among some (and they will be here soon) that brokers will manipulate prices to supply you with a less than equitable deal if they are on the opposing side. In my experience, many of these people have to test to root cause of their trading failures and have chosen to focus their search for their answers. It's a phase most of us go through.
    Due Phil.

  4. #4
    Quote Originally Posted by ;
    Hello everybody,

    Could anybody share what is the significance purpose of a working desk ? Particularly when brokers imply no table.

    Thanks.
    Mike
    The fundamental distinction is straightforward. When you work with a working desk, then they exhibit price control and 100% order information of their clients, which allows them to control quotes to sweep their client stops which are in-range. On a non-dealing desk platform, there's absolutely no human intervention price control, meaning that theories like stop sweeping, requoting, etc. are non-existent. Would you need to trade against the house or do you want to trade against the market? The difference is enormous.

  5. #5
    Quote Originally Posted by ;
    The basic distinction is straightforward. When you work with a working desk, they display price control and 100% order information of their clients, which enables them to manipulate quotes to sweep their client stops that are in-range. On a non-dealing desk platform, there's absolutely no human intervention price control, meaning that theories like stop crossing, requoting, etc. are non-existent. Would you need to exchange against the home or do you want to trade against the market? The difference is huge.
    Wow. This forum is great!

    FXChant,

    Meaning in a working desk environment, you are at the mercy of the market maker's quotes while in a non-dealing desk , you're actually trading with market rates (of course , they include in the spread that is their revenue)


    Once again thanks Phil and FXchant!

  6. #6
    Quote Originally Posted by ;
    Hi everyone,

    Would anyone share what is the meaning purpose of a working desk ? Particularly when brokers imply no dealing desk.

    Thanks.
    Mike
    The stickys at the peak of the thread are very well written and offer much in depth info. Required reading!

  7. #7
    Quote Originally Posted by ;
    Meaning in a dealing workplace surroundings, you are at the mercy of the market maker's quotes while in a non-dealing desk , you are really trading with market rates (of course they add in the spread which is their earnings)
    Nothing could be further from the reality. It doesn't matter to me what you chose but don't do it for the wrong motives.

    A market is created by somebody who trades against you personally and has more funds than you. Someone always takes another side of your commerce. It is your broker. In a non-dealing surroundings it's generally a liquidity provider who's simply a larger broker. Your mini lot isn't likely to appear at Bank of America. Please get it out of your head that one is much more devious than another. The gap between getting screwed and getting screwed once removed is minimum.

    Market Rates are the prices your broker shows you. There is no market for you to participate in. You are trading in a localized pool. Assuming that you use a relatively bigger and reputable broker, your broker's quotes will probably mirror those of all brokers. I have plotted quotes from dealing and non-dealing brokers and they monitor each other very well. If a person is a pip different then so be it. It all comes out in the was as they say. From time to time, you're going to find a pip worse and sometimes you're going to find a pip better. Your broker will not keep a group of executives sitting around trying to figure what your next move will be and in which way they should control the market.

    Concerning the spread you should know that NDD brokers charge a factor spread and as soon as the market starts moving that disperse generally widens to reflect the higher uncertainty on the market. It's not uncommon to see double digit spreads out of them in times of tumultuous trading. Does that disperse make it dificult to go into the market but in case you are already in you could be taken out. Every broker makes money and that is their right. Some have adjusted spreads and some changeable ones. Believing that one version has your best interests in mind is a mistake.

  8. #8
    DEFINITION of 'No Dealing Desk'
    A means of Currency Market trading that offers immediate access to the interbank market. The interbank market is where foreign currencies are traded. This is different than investing via the dealing desks which are loed in several banks and financial institutions. By employing a working desk, a Currency Market broker who's registered as a Futures Commission Merchant (FCM) and Retail Foreign Exchange Trader (RFED) can offset transactions. If a no dealing desk system is utilized, positions are automatically counter and then transmitted directly into the interbank.

    INVESTOPEDIA EXPLAINS 'No Dealing Desk'
    Forex brokers using this system work directly with market liquidity providers. When investing via a no dealing desk, instead of dealing with a single liquidity supplier, an investor is dealing with many providers in order to acquire the most competitive bid and ask prices. An investor employing this method has access to instantly executable rates.

    Quote from Investopedia.com

  9. #9
    Quote Originally Posted by ;
    DEFINITION of 'No Dealing Desk' A way of FX trading that offers instant access to the interbank market. The interbank market is where overseas currencies are traded. That is different than trading through the dealing desks which are loed in many banks and financial institutions. By using a dealing desk, a FX broker who is registered as a Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED) can offset transactions. If a no coping desk system is used, rankings are automatically counter and then sent directly to the...
    your like 8yrs to overdue

  10. #10
    Quote Originally Posted by ;
    quote Thanks Phil.
    Thanks for this explanation. So many novice traders are concentrating on this rather than loing the right egy which can work to them and studying market conditions.
    I have passed this stage and I guess you are right everybody have to undergo it . .
    Now I'm on assignment to find appropriate broker that can offer me best promotions so that at least partially I can rely on their bonuses and safeguard my own capital.

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