Fixed spreads stay the same regardless of what market conditions are at any given time. In other words, whether the market is volatile like Kanye’s moods or quiet as a mouse, the spread is not affected. It stays the same.Fixed spreads are offered by brokers that operate as a market maker or “dealing desk” model.
Using a dealing desk, the broker buys large positions from their liquidity provider(s) and offers these positions in smaller sizes to traders.
This means that the broker acts as the counterparty to their clients’ trades.
Having a dealing desk, allows the forex broker to offer fixed spreads because they are able to control the prices they display to their clients.
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