Goldman sachs forex trading strategies

October 7, by JB Marwood. They are unavoidable, since no-one can predict the markets all the time and no-one can win on every single trade.

In the article linked above is a news story of how Goldman Sachs traders made money on every single trading day of the first quarter in It basically works like this.

Wealthy clients and companies call up Goldmans trading desk whenever they want to invest in a stock or bond or some other security.

Goldman Sachs traders then buy that security direct from the exchange, at interbank rates, and sell back to the customer with a tiny commission or spread added on top. That allows Goldmans to pocket the spread and make what is effectively a risk-free profit. Because if they trade quickly there is very little chance of them losing money on the trade. And for large orders, the profit from the commission can be quite substantial. There is a bit of a problem, though.

Goldman Sachs | Goldman Sachs Electronic Trading (GSET)

Many assume that investment banks make their money through speculative trades and by taking risk. And many think that it shows the industry must be corrupt. But if you know how execution traders actually do their jobs it begins to make a lot more sense.

Not how most people perceive it anyway. Just enter your email address below to download all. Unsubscribe at any time. Subscribe to the mailing list. Notify me of follow-up comments by email.

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Notify me of new posts by email. JB Marwood is an independent trader, educator and writer specialising in trading systems and stock trading. He began his career trading the FTSE and German Bund for a trading house in London and now works through his own company. He also writes for Seeking Alpha and other financial publications. Nothing on this site is to be construed as personalised investment advice. Please see the full disclaimer.

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Charts Amibroker Systems Research Tools I Use Brokers Blog About Amibroker Book Free System Latest Top Posts. How Do Goldman Sachs Traders Go 63 Days Without A Trading Loss? Goldman Sachs traders made money on every single trading day of the first quarter in That's 63 days straight without a loss. Leave a Reply Cancel reply Name Email Website Subscribe to the mailing list Notify me of follow-up comments by email.

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