John Robert T_ Martinez#61

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How do liquidity providers operate in forex markets?

Liquidity providers (LPs) are large banks, financial institutions, or specialized firms that continuously quote buy and sell prices. They bridge the gap between traders and the interbank market. Institutions often have direct LP agreements, while brokers aggregate quotes from multiple LPs. Benefits: deep liquidity pools ensure smoother execution. Risks: some unregulated brokers may manipulate liquidity feeds. For retail traders, choosing brokers with top-tier LPs is crucial. LPs are the market makers behind the curtain—their role ensures that forex remains a functioning, liquid marketplace.