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?
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?
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?