Liquidity Provider
a.k.a. LP
A bank or trading firm that continuously quotes buy and sell prices, standing ready to trade, and so…
In plain English
A bank or trading firm that continuously quotes buy and sell prices, standing ready to trade, and so supplies liquidity.
A liquidity provider is the other side that is always there: it streams prices and takes trades, earning the spread. Big banks and electronic trading firms fill this role in forex.
Brokers connect to several of them, often through a liquidity aggregator, to offer you tighter prices.
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