How Forex brokers convert mini lots (10k) into standard lots(100k)?

Discussion in 'Forex' started by crgarcia, Feb 5, 2008.

  1. Large bank don't accept mini-lots, right?
    Do they?

    What if they can't find 10 mini-lot orders to form a std lot?
  2. I thought this was a good question and am surprised that it didn't get an answer. Do brokers like FXCM then keep mini-lot orders in house until they have a full lot and then send it out?
  3. The idea that marketmakers hedge each individual trade is a common misconception. They don't, no matter what they tell you about STP, ECN-style, or non dealing desk.

    They're all basically bucketshops but they hedge their overall exposure depending on market conditions, and the company's risk profile and it's business model. Don't forget a lot of trades provide in-house liquidity.

    Some marketmakers operate two books, hedge and non-hedge for different clients.

    Think about it logically. If you were a marketmaker like FXCM where probably >90% of your clients consistently lose money what would you do?