Last Updated on February 19, 2025 by Arif Chowdhury
As a seasoned Forex trader since 2015, I’ve seen it all.
You ever wonder why the Forex market feels rigged?
Why do prices spike and drop suddenly, leaving you scratching your head?
Let’s dive into how big banks and institutions play the game.
They’re not just participants; they’re the puppeteers pulling the strings. 🎭
Who Are the Big Players?
Big banks and financial institutions dominate the Forex market.
They account for over 70% of daily trading volume.
With that kind of power, they can easily influence market movements.
Here’s how they do it:
- Liquidity Provision: They provide liquidity, making it easier for smaller traders to enter and exit positions.
- Market Making: They act as market makers, setting prices for various currency pairs.
- Information Asymmetry: They have access to exclusive information that retail traders simply don’t.
The Strategies They Use
Big banks have a toolbox full of tricks.
Here are some common strategies they employ:
- Stop-Loss Hunting:
- They often push prices to hit stop-loss orders.
- It creates panic selling, allowing them to buy at lower prices.
- News Manipulation:
- Economic news releases can be pre-empted by institutions.
- They make their moves before the general public reacts.
- High-Frequency Trading (HFT):
- Using algorithms, they can execute thousands of trades in seconds.
- This can create price distortions that retail traders can’t compete with.
- Order Clustering:
- They place large orders to manipulate market sentiment.
- This can lead to a snowball effect, influencing smaller traders to follow suit.
Understanding the Market Dynamics
The Forex market operates 24/5, making it a playground for manipulation.
You might think your trades are independent, but they’re not.
When big banks make a move, it can ripple through the entire market.
Statistical Fact: Over $6 trillion is traded daily in the Forex market, and institutions leverage their positions to move prices significantly.
My Trading Journey
In my own trading journey, I’ve developed a unique strategy that thrives despite these manipulations.
I focus heavily on technical analysis, which helps me navigate through the chaos.
It’s all about finding the right tools to level the playing field.
That’s why I created 16 sophisticated trading bots.
These bots are strategically diversified across major currency pairs like EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Each bot is designed to minimize risk while maximizing returns.
With their multi-layered approach, the likelihood of simultaneous losses is significantly reduced.
I’ve backtested these bots for the past 20 years, and they perform excellently even under harsh market conditions.
And guess what? You can access this entire EA portfolio for FREE!
If you’re serious about trading, check out my trading bots portfolio.
Why This Matters to You
Understanding how institutions manipulate the Forex market can give you an edge.
Here’s what you can do:
- Stay Informed: Keep an eye on news releases and market trends.
- Use Technology: Leverage trading bots to automate your strategies and minimize emotional trading.
- Choose the Right Broker: Not all brokers are created equal.
Finding a trustworthy broker can make a world of difference.
Best Brokers to Consider
I’ve tested numerous brokers to find the best for retail traders.
These brokers offer tight spreads, excellent execution times, and significant customer support.
Make sure to check out my recommended list of brokers at Most Trusted Forex Brokers.
Conclusion
The Forex market may seem daunting, but knowledge is power.
By understanding how big banks and institutions operate, you can navigate the market with confidence.
Don’t forget about the tools at your disposal.
My 16 trading bots are designed to work in your favor, and they’re available for free.
Combine that with a solid broker, and you’ll be on your way to a successful trading career.