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Institutional Liquidity: The Common Pitfalls Retail Brokers Face

This crypto news content discusses the importance of institutional liquidity in the cryptocurrency market. Institutional liquidity refers to markets where large institutions trade with each other. These institutions, also known as market makers, create active markets for traders and have access to better conditions due to factors such as economies of scale, access to advanced technology, and direct market access. By accessing institutional liquidity, retail brokers can provide their clients with top-tier market conditions and protect their position in the market. It is important for brokers to establish direct relationships with institutional liquidity providers to ensure accurate pricing and efficient execution. Failure to access institutional liquidity can result in misleading representations of market conditions and dilution of liquidity value. Retail brokers must also choose the right institutional partner to mitigate counterparty risk and gain knowledge, experience, and innovation.

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