Mason Mason Hill#3

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What is liquidity aggregation in forex trading?

Liquidity aggregation combines quotes from multiple providers into a single order book, giving traders access to best available prices. Institutions use aggregators to ensure optimal execution across fragmented venues. Retail ECN brokers often use aggregation to offer tight spreads. Benefits: reduced costs, better fills, and greater transparency. Risks: aggregation complexity can create mismatched orders or slippage. Traders who understand aggregation appreciate why spreads differ across brokers. Liquidity aggregation exemplifies how technology bridges fragmentation, ensuring fairer competition and improved execution.