Brokers

Question 1

Explain 3 main features of the “Market Maker” concept.

Market Maker

Answer 1

1. Has a large liquidity pool.
2. Ready to buy or sell instruments.
3. Create its own prices.

Question 2

How are quotes created?

Market Maker

Answer 2

1. We obtain data from data vendors.
2. Our Market Making system uses complex algorithms to analize the data.
3. We adjust spread according to risk or business needs.
4. We show the final quotes to the customers.

Question 3

What are the profit sources for a Market Maker broker?

Market Maker

Answer 3

The spread, the comission, an the difference swap.

Question 4

Explain 3 differences between Market Maker and A-Book.

Market Maker

Answer 4

1. Quote creation: A-Book brokers don’t create their own prices while Market Makers do.
2. Execution: A-Books don’t execute client orders while Market Makers do.
3. Source of Income: A-Book mainly profit from comission, market makers mainly profit from spread.

Question 5

What is Exness’s business model (A-Book, B-Book, etc)? How do we position ourselves when communicating with the client?

Market Maker

Answer 5

We are a Multi-Asset Market Maker Broker. When communicating with clients we are a Multi-Asset Broker.