What is a dealing desk brokerWhat is an online broker?
In online trading, a broker is ... More?
that operate as dealing desk brokers act as the counter-party of their clients’ trades.
The broker sets a bid and ask price at which they are willing to buy and sell. This way, the broker’s clients are always able to fill trading orders. Dealing desk brokers are therefore also .
Because the dealing desk broker is the counter-party to their client’s trades, it may seem as if there is a conflict of interestWhat is interest? In finance and trading, interest is a f... More. However, this is not necessarily the case because the broker publishes the priceWhat are value stocks? A value company is a company that app... More at which they are willing to buy and sell, and the traderWhat is a trader? A trader is a person who buys and sells... More can accept or reject these terms.
Orders placed with a dealing desk broker will rarely reach the interbank market and are most likely to stay within the confines of the broker’s own .
Dealing desk brokers make moneyMoney is a generally accepted medium of exchange to buy and... More by buying at lower prices and selling at higher prices. This allows them to make money in both rising and falling markets by simply taking advantage of the spreadWhat are trading spreads? In online trading, spread is th... More between the bid and ask priceAn ask price is the price a prospective seller wants from th... More. It also means they can offer their clients fixed spreads.
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