What does the term 'STP' mean?

Article ID: 92369  

Question
What does the term 'STP' mean?

Answer

The STP (or Straight Through Processing) technology requires no dealing desk. All orders are routed to the broker's liquidity providers, and prices are executed at the bid/ask rate provided by liquidity providers. Liquidity providers are hedge funds, big banks, and investors that effectively act as counterparties to each trade.


Article Details
Views: 1715 Created on: Jun 27, 2017