yeah there's. I desired to know so that I could look into it when researching brokers so that I could have access to places and so give myself the many choices for liquidity and getting my orders put.Originally Posted by ;
yeah there's. I desired to know so that I could look into it when researching brokers so that I could have access to places and so give myself the many choices for liquidity and getting my orders put.Originally Posted by ;
Once we talk about LPs as quoted in the list above their are a couple of different forms...Originally Posted by ;
prime of prime (PoP) - a broker using a balance sheet that functions as a credit intermediary for different brokers, i.e. they have a prime brokerage arrangement with a tier one, they possess the give up arrangements with several liquidity providers that are banks, non banks, hedge funds, etc..
These are not actual LPs, they are just middle men. The advantage of a middle man is that a balance sheet guarantees more give ups (more liquidity), usually higher volumes that means better spreads and commissions...
This could be;Boston Prime LMAX FXCM MBTrading FCStone ADS Securities GKGOH (who. . ?) SBI (. . ??) Saxo Bank Then there's non banks, similar to men as they will take they risk, make money off it and move it on. All these are the guys who help to keep spreads tight through news announcements. I see them_0_EXTENSION Capital Lucid Markets
Then we've got actual liquidity suppliers, banks that warehouse risk and accept your trades when EURUSD is falling like a rock and everybody else has run for cover. When you see 10, 5, 550M sitting at the depth it is these guys.Citi ABN Amro BNP Nomura Does one of the above matter? Not a bit. The above list broke down because im a bit. .
Worry about trading not LPs. If you are spending time worrying about LPs you're either amazingly good and no one needs your flow or you do not understand how the market operates and exactly what your searching for doesn't really exist (probably).
Liquidity providers these days internalise the flow and currency game.Originally Posted by ;
Once the vulnerability gets to large they'll supercharge the risk into the wholesale market.
Yes Liquidity providers can eliminate money if they price too tight or get run over by competitive client algo's.
Thanks for pointing that.Originally Posted by ;
Now I know liquidity providers take risk too, just like us as a trader.
Since traders like us can choose the very best currency pairs to trade during the ideal time but money providers don't have any choice, they just accept what are send to them, I am curious which side having the bigger risk, trader like us or liquidity providers?
Or, in other words, which side loss more income?
I'm wondering, if the liquidity providers loss money why they still in this enterprise.
Liquidity providers may lose 1 day but they have deeper pockets and they will be back the next.Originally Posted by ;
Individual punters might not have that luxury and are unable to keep in the game.
Here lies the lesson. . Its critical that you maintain yourself throw one roll of the dice.
Slow and steady wins the race within this fast pace environment.
Good luck
Hi, Could you please clarify what's the exchange-style broker?Originally Posted by ;
When I understood your explanation, Integral is the ECN, is that right? What do you believe when you say they need credit because of their sytem to operate, do not they match orders for various banks/organizations?
BTW, have you got any idea where I can find information to really dwell into how the entire FX market infrastructure functions? E.g. who are tier 1, tier two, e.t.c. providers? What are brokers like LMAX? Where the entire sheme eventually ends-up with - who's the last risk-taker?
Thanks!