Forex liquidity providers: Liquidity for an asset, such as currency, is the ability to be bought or sold without a large effect on the price. In Forex trading, liquidity is the ability to sell or buy a currency pair without affecting the price. If a currency pair does not have enough liquidity it will be difficult to sell or buy that currency pair.
As greater trade volume and number of traders become active in a market, the more liquid it becomes. The Forex market is the most liquid market in the world since there are several banks, companies and individuals trading about $4 trillion in currencies daily.
Forex liquidity providers are firms that provide the financing for equity or debt transactions. Without their assistance; the number of transactions in the market would decrease and also the ability to buy and sell a currency pair. Forex liquidity providers will quote two way bid and offer prices corresponding to a defined minimum value, providing the maximum spread possible, this way traders will make bigger turnover from their trades.
The use of Forex liquidity providers allows for a company to offer lower prices and greater order depth. This is a successful approach to increase liquidity and more efficient prices for investors.
Tradeview Forex offers two types of liquidity services:
A clearing account is a temporary account that holds costs until those costs can be transferred to another account. This type of account lets a firm to hedge their clients' trades and mitigate natural market risk. When it comes to clearing accounts, Tradeview Forex provides its clients with some of the narrowest spreads out there.
In order to expand your firm, you are going to need at least one or two liquidity accounts. In times of high market volatility a liquidity account allows you to hedge your clients' trades and mitigate risk among a range of different trading counterparties.
There are different ways of managing risk, from passing 100% to cutting off a small portion of trades.
For more information visit: https://www.tradeviewforex.com/liquidity-services.php