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Understanding Market Makers

A market maker is a company that is always ready to buy or sell a financial asset at an openly quoted price on a long-term basis. Market makers participate in transactions directly as either the seller or buyer. To a large extent, they determine the buy or sell price for specific trading instruments. The main role of a market maker is to provide liquidity, or create opportunities for other market participants to buy or sell a fairly large range of stocks, currencies, futures and other trading instruments at an openly quoted price. Because they always act as the counterparty to a transaction, market makers are risking their own funds; for this reason they engage in various strategies to insure (hedge) against losses.

Forex market makers are large financial companies and banks whose transactions make up a significant portion of the total volume of Forex trading, giving them influence on currency exchange rates. Large international banks that trade currency worth tens of billions of U.S. dollars on a daily basis are usually referred to as market makers.

The largest and best known market makers include: Deutsche Bank, Barclays Capital and UBS AG. A bank’s share in overall trading volume is more important than its total capital in determining whether or not the bank is a market maker. In other words, what matters is a bank’s actual ability to influence movement on the market by offering its buy and sell prices. Even small and medium-sized financial companies can be Forex market makers. As a market maker, our company provides its partners and clients with trading services on the Forex and financial markets.

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EXNESS (CY) LTD (registration number HE 293057) is authorized and regulated by CySEC (Cyprus Securities and Exchange Commission), license number 178/12.
EXNESS LIMITED (registration number 3570551) is listed on New Zealand's Financial Service Provider Register (No. FSP181164) and is also a member of the Financial Dispute Resolution Service.
EXNESS LIMITED (VC), registration number 21927 (IBC 2014).
FDR Registration ISO standard 9001:2008
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General Risk Warning: CFDs are leveraged products and as such loses may be more than the initial invested capital. Trading in CFDs carry a high level of risk thus may not be appropriate for all investors. The investment value can both increase and decrease and the investors may lose all their invested capital. Under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs.