I still don't have one generic point clear. Let's say I place a market order of just 1000 units of base currency (that's minimum allowed in pepperstone, i.e. microlot), I get "good" execution and I get very happy.
Who filled this peanut order ? Who is the counter party? I don't see Liquidity Provider's directly handling these peanuts. So obviously some kind of aggregation is happening. I want to ask this "aggregation" is happening where and for a micro size order, how is STP broker different from a market maker?
So, during the time interval between a microlot trader's oder "execution" and the aggregated order actually reaching the LP, there is a vulnerability to manipulation even in STP model isn't it? I am talking ONLY about micro sized order.
Put in other words, as far as microlots are concerned, what is the difference between MM and STP model.
I have asked this question to Pepperstone email support and I am waiting for a reply. Will post here what they reply, if they do. I am looking for a trader reply here.
Who filled this peanut order ? Who is the counter party? I don't see Liquidity Provider's directly handling these peanuts. So obviously some kind of aggregation is happening. I want to ask this "aggregation" is happening where and for a micro size order, how is STP broker different from a market maker?
So, during the time interval between a microlot trader's oder "execution" and the aggregated order actually reaching the LP, there is a vulnerability to manipulation even in STP model isn't it? I am talking ONLY about micro sized order.
Put in other words, as far as microlots are concerned, what is the difference between MM and STP model.
I have asked this question to Pepperstone email support and I am waiting for a reply. Will post here what they reply, if they do. I am looking for a trader reply here.
Not trend, but imbalance is my friend