Is it possible to cheat Forex and why you shouldn’t do it?
Forex is an international currency exchange market where tens of millions of transactions are made every day.
This is a huge and complex market in which both large financial institutions and individual traders operate.
Trading on Forex requires certain skills and knowledge, so making money here is not easy, and after unsuccessful attempts, many traders have a desire to cheat on Forex, that is, to make money regardless of changes in the exchange rate.
Usually in these cases they try to make money using various schemes, such as:
The essence of currency or cryptocurrency arbitrage is that in some cases the price of selling a currency in one place is lower than buying that currency in another.
For example, on one of the exchanges they sell Bitcoin for $35,000, and on another they buy it for $35,100. As a result, you make money not on the growth of the exchange rate, but on the price difference. Despite the apparent simplicity of implementation, to earn money you need not only a large amount of money, but also take into account all the overhead costs and commissions.
Schemes are also used when first one currency is exchanged for another, and then for a third or even a fourth, as a result it is possible to make a profit.
Advisors – opening transactions using special software, so-called trading robots.
It is also a completely legal way to deceive the Forex market to some extent, through brokers whose advisors are allowed to trade .
The essence of the “deception” is that the scripts analyze the market faster and open trades than an ordinary person. This gives you an advantage over other participants in the foreign exchange market and increases your chances of making a profit.
The main difficulty is choosing a suitable advisor and setting it up for trading a specific asset.
Manipulation of the trading platform – some traders try to use their broker through the trading platform, but such attempts do not yield anything and are illegal.
Information about the deposit is stored on the broker's server, and the platform only manages the opening of transactions. With the same success, you can try to hack the bank’s server, and the penalties for such activities will be the same.
Manipulation of quotes – liquidity providers also differ depending on the broker, so quotes often differ on different trading platforms or websites.
A legitimate option to cheat forex would be if you find a source that shows quotes a little faster than they appear in your trading platform, in which case you will “see the future” and can pip .
Earning money on a swap – a positive swap allows you to make money on the difference in discount rates when you receive a profit for transferring a position.
You can find out how much you can earn on a positive swap from this article - Carry Trade Carry Trade strategy
But when using this strategy, there is an exchange rate risk, that is, you make a purchase transaction based on a positive swap, but the price of the currency pair falls and eats up all your profit from the positive swap.
To deceive Forex, they use a locking , when a deal is opened in parallel in the opposite direction, but only in a way in which a swap is not charged.
For example, in the trading platform you buy the EURCHF pair with a positive swap for long transactions, and in your bank account, you purchase the Swiss franc in the same volumes. As a result, the transaction is blocked and only the swap remains in the net profit.
The Carry Trade strategy is quite complex and requires large amounts of funds to obtain significant profits.
In conclusion, we can conclude that cheating on Forex is not so easy, legal methods will not bring much profit, and illegal ones can lead to punishment. Therefore, it is better to spend time learning trading than searching for options on how to cheat the Forex market.