How Forex Market Makers Operate
Like any other currency trader, a market maker needs reliable access to real-time financial information (quotes, interest rates, etc.). This information arrives via high-speed connections with authoritative news agencies and trading platforms around the world. As an example, EXNESS partners with Dow Jones Newswires.
A market maker also needs to have sufficient free capital in order to meet its obligations to trade with clients. At any moment, a market maker must be able to give its clients the opportunity to buy or sell a financial instrument at a fair market price.
Market makers usually minimize their risks by contracting with larger market makers or brokers so that their clients can be redirected to the interbank market when needed. EXNESS partners with several large European banks for additional hedging of its trading risks.
Companies offering services on the Forex market need to provide their clients with the latest trading tools. Online trading platforms are the most popular tools for Internet trading, with access to real-time exchange rates and an interface for buying or selling selected instruments. Many trading platforms include additional options for performing market analysis and forecasting market movements using indicators and other tools. EXNESS clients use the most popular trading platform, MetaTrader 4, which offers an ideal combination of convenience and functionality. With the flexible tools available in MetaTrader 4, traders can implement any type of trading strategy.