Brokers

Question 1

Explain 3 main features of a market maker concept

Answer 1

1. Sets prices
2. Have large liquidity pool
3. Profit from clients transaction cost

Question 2

How are quotes created?

Answer 2

1. Exness gets price data from multiple market data vendors
2. Market Making System uses complex algorithms and analyse the price data and produce new quotes
3. Exness sets the spreads according to risk
4. Final quotes shown to clients

Question 3

Specify profit for market maker brokers

Answer 3

Spread and commission (for raw and zero accounts)

May also profit from the difference on Swap

Question 4

Market Maker and A Book

Answer 4

Market maker

1. large liquidity pool
2. sets prices
3. profit largely from transaction costs.

A - Book

1. Receive prices from other brokers
2. No liquidity provider
3. Source of income is commission

Question 5

Market Maker and B Book

Answer 5

B Book

1. Receives price from other brokers
2. Have a liquidity provider
3. Profit from clients losses