Liquidity Provider 

A liquidity provider is a market broker or an institution that acts like a market maker in a selected asset class.

What does it mean? The liquidity provider acts at both ends of currency transactions. Sell ​​and buy a specific asset at specific prices. It means that he makes a market, nowadays stockbrokers have liquidity providers who commit to providing liquidity in a certain capital, liquidity in the foreign exchange market can be understood as the ability of an object valued in a certain period of time.

When trading forex, you are trading on the liquid market; However, they operate on the basis of available liquidity from financial institutions that allow you to enter or exit the business of your choice. Greater liquidity is desirable for everyone in the market. Lower spreads and trading costs Increased price stability As liquidity providers, we can influence more price stability and also improve liquidity by making it more secure.

Thanks to this function, liquidity providers become important services. Risk, but they can still benefit from the spread or use inferences to position themselves based on valuable information available to them.

The illiquid market has chaotic movements or price gaps. The volume of buying or selling at once can change suddenly. A highly liquid market is also known as a fluid market or a deep market. Most traders need and should be concerned with the liquid market as it is very difficult to manage risk if you are on the wrong side of a large move in an illiquid market.

The liquidity provider must meet high standards. It should be stable, reliable, and have depth on all multi-set instruments. The key feature is also quick and reliable trade execution. Liquidity is the final factor that any broker or white label should look out for. Choosing a Provider Good and reliable liquidity should be the most important step in building a new FX business.

Zeal Group is cross-connected with the world’s leading liquidity provider, the global data centres in London (LD4), Tokyo (TY3), and New York (NY4), and we are co-connected to the Equinix Data Center. ZFX Aggregate Multiple Liquidity Providers into One Pool.