providing liquidity with limit orders

13 Nov 2012, 21:53providing liquidity with limit orders#1
mattgposts: 3since: 10 Nov 2012

dear support,

if the bid/ask is 1.2700 / 1.2701; and I would like to place a bid at 1.2699;

will cTrader place my limit order with the liquidity provider? or is it staying in cTrader server?




20 Nov 2012, 16:21#2
Spotware Support posts: 400since: 01 Jan 2012

All platforms always host limit and stop orders. This includes cTrader, ECNs, aggregators, etc. They are almost never hosted with individual Bank LPs. This is due to the fact that (1) you never know what Bank LP will quote the required price first and (2) the Banks do not provide such functionality. Limits and Stops are then sent to the LP when the price is triggered. Price advantage is still probable for Limits. Also, what makes cTrader different is that (1) it is located right next to the LPs, (2) that there is no need for unnatural hops (i.e. bridges) because we operate over FIX and (3) cTrader treats resting orders as Limits and Stops respectively, not as Market Orders like some other platforms do.