Forex liquidity providers: Liquidity services

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:

-Clearing Account

 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.

-Liquidity Account

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.

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