Dealing Desk, intra-company trading

Many traders, having heard that their broker provides dealing services using the Dealing Desk system, immediately panic, expecting various troubles from the broker.

Dealing Desk (DD) is a system for organizing trading in currencies or other financial assets, in which an internal platform is created, the liquidity of trading instruments on which is provided by the dealing center itself.

That is, everything here is as simple as possible, if you submit an application to buy the EURUSD currency pair, the system begins to look for a counter application to sell it, if one does not exist, your brokerage company will act as the second party to the transaction.

At the same time, assumptions immediately arise - that the broker will never allow losses on his part, because in the case of a two-way transaction, your profit is his loss. But such a statement is not always true, therefore, when considering trading on the Dealing Desk (DD), a number of factors should be taken into account.

Features of trading via Dealing Desk (DD).

1. Account type - all cent brokers carry out operations on cent accounts using the Dealing Desk; in practice, it is difficult to imagine how an order to buy one euro will be transferred to the interbank market, and large brokers can create hundreds of thousands of such orders per day .

Therefore, if you decide to trade on mini accounts, you should not count on pure dealing.

Dealing Desk brokers are often called market makers, that is, those who independently form the market, although, as a rule, quotes for such trading do not differ from real stock exchange quotes.

2. Liquidity - in order to exclude broker interference in the dealing process on DD accounts, you should choose the most popular currency pairs , and trade only at those moments of the year when the market is most active.

In this case, the broker will not be forced to act as the second party to the transaction; when opening a new order, there will always be a lot of counter offers from other traders.

An alternative to internal trading is trading on the No Dealing Desk, which usually involves volumes of 1 lot and a deposit balance of $300 or more.

In fact, when trading Forex, a big role is played not by the option of organizing trading itself, but by the reputation of the broker and his desire to give away profits.

There are not many brokers for large-scale trading on Forex; one of such companies is AMarkets . If you want to be sure that you will not be interfered with in receiving and withdrawing significant profits, then it is better to choose this company.