The Main Types OF CFD Brokes
Article by bbb666
Undo <a href="
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1. STP Broker Straight through Processing model
2. ECN Broker Electronic communications network model
3. DMA Broker Direct market access model
4. MM Broker Market maker model
5. P2P Broker Peer to Peer model
The STP/ECN and DMA Brokerage models are the ESTABLISHED brokerage variations that submit all your trade flows to the managers of the common market. The managers of the conventional market are referred to as the Market Makers.
These Market Makers are the providers who you are in reality, trading against.
Thus if you succeed, they lose. In the equal line of thinking, however, if you generally win, it suggests that the provider is losing and vice versa.
The market makers maintain the authority to decline your trade flows. this factor is ultimately a principal element. You can trade with a provider that is functioning an STP/ECN/DMA model and nevertheless experience your trading winnings canceled or a more painful circumstance , your deposit may held back for a while. This type of unethical action of a STP broker may happen to be as a result of their Market Makerrefused your orders at some phase and thus, any profit you realized turns into invalid. The market maker might as well choose to penalize the Broker for approving such revenues by retaining your deposit. These are some of the realpoints of the common traditional CFD brokering models.
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