👉 The brokers' weapon, often referred to as the "bullwhip," is a metaphorical term used to describe the leverage and market influence that experienced brokers wield in financial markets. This leverage allows brokers to execute trades on behalf of their clients with significantly larger positions than they could manage individually, amplifying their impact on market prices. By taking large positions, brokers can influence asset prices, creating a self-reinforcing cycle where price movements further encourage more trading. This power can be used to benefit brokers through higher commissions and spreads, but it also raises concerns about market manipulation and the potential for destabilizing market dynamics.
