Thomas Thomas T_ Brown#24

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How do prime brokers support institutional forex trading?

Prime brokers provide institutions with access to multiple liquidity providers, leverage, and credit lines. They act as intermediaries, consolidating relationships into a single account. Benefits: efficiency, better spreads, and risk management. Risks: reliance on prime brokers can create systemic issues if they fail. Retail traders generally don’t use prime brokers but may indirectly benefit from improved liquidity. Prime brokerage is the infrastructure behind institutional forex, enabling hedge funds and banks to operate at scale.