What Is a Dealing Desk?

A dealing desk is a type of market maker that provides liquidity to forex traders by filling orders from its own inventory of currency pairs. Dealing desks are also sometimes referred to as "market makers."

Dealing desks make money by charging a spread on each currency pair that they quote. For example, if the dealing desk quotes a EUR/USD spread of 1.20, that means the desk will buy EUR/USD at 1.19 and sell it at 1.21.

Dealing desks are typically used by large banks and financial institutions. They can also be used by retail forex brokers, although this is less common.

Dealing desks provide a number of advantages to forex traders, including the ability to trade with a high degree of liquidity and tight spreads. However, dealing desks can also be a source of conflict of interest, as they are motivated to make a profit from the spread.

What is an STP broker? An STP broker is a type of forex broker that uses Straight Through Processing (STP) to route orders to liquidity providers. STP brokers typically offer their clients a choice of multiple liquidity providers, and they may also charge a commission or mark-up on spreads.

STP brokers typically offer their clients a choice of multiple liquidity providers. This means that when a client places an order, the broker will route the order to the liquidity provider that offers the best price at that moment. STP brokers may also charge a commission or mark-up on spreads.

STP brokers are often contrasted with market makers, which are forex brokers that take the other side of trades themselves. Market makers typically offer lower spreads than STP brokers, but they may also trade against their clients.

How many hours a week do traders work?

There is no definitive answer to this question, as it largely depends on the individual trader's schedule and trading style. Some traders may work extended hours, including overnight and weekends, while others may only trade during regular market hours. The amount of time a trader spends working also depends on how active they are in trading; some traders may take a more hands-off approach, while others may be constantly monitoring the markets.

How do trading desks make money?

Trading desks make money by buying and selling currencies on the foreign exchange market. They do this in order to make a profit from the difference in the exchange rates of the currencies. In order to make a profit, the desk must buy the currency at a lower price and sell it at a higher price.

The foreign exchange market is a 24-hour market, so trading desks are constantly buying and selling currencies in order to make a profit.

What happens in a dealing room?

In a dealing room, forex traders work in shifts to trade currencies around the clock. The most important currency pairs are traded in the morning, followed by the less important ones in the afternoon and evening.

When a currency is bought, the trader is said to be "going long", and when a currency is sold, the trader is "going short". Currencies are traded in pairs, and the value of a currency pair is quoted in terms of one currency against the other. For example, in the EUR/USD pair, the EUR is the "base" currency and the USD is the "quote" currency. This means that one EUR is worth 1.17 USD.

The dealing room is the heart of the forex market. It is where most of the trading takes place and where the prices of currencies are set.

Is derive reliable broker? Derive is a reliable broker that offers a variety of features and tools to its clients. These include a demo account to help clients learn about forex trading, a mobile app for on-the-go trading, and a variety of account types with different leverage options. Derive also provides its clients with 24/7 customer support and a variety of educational resources to help them become successful forex traders.