Resolved Question
What is the reason why brokers still trade with their clients?
I don’t understand why brokers still need to trade when they earn money from spreads and also from traders who lose money.
about 1 year ago
Best Answer - Chosen by Voters
Remember that whenever your going long or short you are essentially buying one currency and selling another currency simultaneously. The thing is, there are times when your broker is unable to match your order with another buy/sell order... which forces them to take the opposite position of your trade.
about 1 year ago
Answers (1)
With an ECN platform, brokers don't engage in trading but it is also true that brokers do get a certain commission from its client losses.
about 1 year ago
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