MM Broker Type

The MM (Market Maker) accounts are what has bought online trading into the studies and living rooms and now cafes all around the world. Companies lend margin and take on the risk management and so provide the opportunity to take miniature size trades in the highest volume markets in the world.

 

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All this is available with a guaranteed price and exit points that no other account type can offer. When you add to this all the insane leverage available, brilliant graphing, flash indicators and tools and essentially live, 24/6 market access and one can understand the popularity.

 

There is just so much marketability of understandable financial market access, with mechanisms to set to automatically execute orders and award additional equity with an ease of electronic funds movement. In the final analysis the whole package is a miracle really.

 

All in the risk management

Each company has their risk management techniques that may involve following winning traders, allowing losing traders trades to run uncovered and also to take the same trades as losing traders so as to engineer win-win scenarios for themselves.

 

Overall though, the company is not so much concentrating on individual traders or trades but assessing exposure and then covering outside, at the next one up the liquidity chain, hopefully the banks, where they do face those lower leverages and higher costs.

 

Fair or unfair?

Some traders that have not succeeded in this supercharged trading environment will place blame not on the trading decisions but on the Market Maker. In most cases this is unfair, but a perception of deception has been born from unfortunately unscrupulous brokers that we must all guard against.

 

Useful Resources about Forex broker types

Electronic Communication Network (ECN) | Straight Through Processing (STP) | Direct Market Access (DMA)