I saw in a forex system description “nearing max subscribers”. I can’t figure out why a forex system would set a limit. Stocks, options, futures I can understand because markets in thinly traded securities might see too much slippage with too many traders. Forex doesn’t have a central market though, so I can’t figure how it would hurt the vendor to add more subscribers. Since I don’t trade forex can anyone explain it to me?
Dave
Dave,
Forex markets are nearly always open. Sometimes there are more bid offers than at other times. When orders come in they are often market orders. During many periods they move the market, which as you know can cause substantial slippage. The question that you need to ask is when would orders of good size cause the various cross rates to move in the Forex? Ask a Banker/trader and you may be surprised.
Reinar.
Advertising gimmick…
It takes advantage of the principle of scarcity, wherein, if one thinks that something’s not going to be available in the future, one is more likely to buy it now, even if one wouldn’t have bought it in the future anyway.
Instilling a sense of urgency as an advertising gimmick, possibly.
But also could be bandwidth. It takes time and work to deal with subscribers.
