Understanding The Concept & Operating Structure Of ECN Forex Brokers

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arincin
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Understanding The Concept & Operating Structure Of ECN Forex Brokers

Postby arincin » Thu May 17, 2018 10:07 pm

Understanding The Concept & Operating Structure Of ECN Forex Brokers

ecn Forex brokersECN Forex brokers operate on an entirely different protocol, which reduces the conflict of interest between a trader and a broker significantly. Active traders and professional investors always make it a priority to trade on ECN or Direct Market Access (DMA) protocols, in order to enjoy higher liquidity and better transparency in pricing.دليل شركات الفوركس To understand the concept of ECN trading in detail, you will need to understand how Forex brokers operate in the markets. A Forex broker is a market intermediary that acts as a link between an investor and the market. The primary responsibility of a Forex broker is to facilitate a transaction at market price, where the underlying instrument can include Forex currency pairs, stocks, commodities, indices, metals, and ETFs. Brokers may adopt numerous trading protocols, platforms, and environments to ensure that they can offer market access to their clients using the best account packages. In reality, Forex trading, or investing in any other financial market in general, does require a high amount of trading capital. Forex trading was only included in the speculative investment category in recent times, as FX trading primarily involved exchanging currencies for meeting debt, purchasing goods, and paying for services through a global forum. However, once speculators and investors started understanding the benefits of betting on price movements, Forex trading quickly gathered momentum in the retail trading market. ما هو التداول بالعملاتSuch a rise in popularity led to the creation of market maker Forex brokers that allowed its clients to speculate on the volatility of the currency markets. Market maker brokers are also known as dealing desk brokers, where all orders are transmitted through a company’s dealing desk. Market maker brokers would act as a counterparty to a trader’s position, by absorbing the opposite end of their clients’ orders. Essentially, if a trader is long on the EUR/USD, the broker would sell the pair in the market to hedge its position against market volatility.سوق التداول العالمي At times, market makerFX brokers may also be able to pass its orders internally to other clients, by matching two traders who wished to buy and sell a currency pair with similar lot requirements. Although market maker brokers became a hugely popular and a common occurrence in the Forex market, traders began to realize that FX trading companies were not all that honest in their approach to their trading services. Fraudulent and dishonest brokers were using several means to trick their clients by offering incorrect price feeds, manipulating the platforms, and by trading against its clients to ensure that their traders lose their money in the markets. Therefore, dealing desk brokers earned a vast amount of negative reputation in the market, as coupled with the risks and volatility of the markets, Forex traders started losing a significant portion of their trading capital.شركة فوركسNote: this website is still only in Arabic language

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