Liquidity provider
A liquidity provider supplies prices or trading interest that other participants can trade against. Banks, specialist firms, and other participants may perform this role, with available prices and quantities varying by instrument, market conditions, and trading arrangement.
In an illustrative forex setup, several banks send quotes to a broker. A bank may reduce its quoted size when market conditions become volatile.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure