2.2.2 Mechanism of Transaction

STP (Straight Through Processing) transaction mode

STP is a technical way in which a dealer sends all client orders to their liquidity provider (bank or other broker).

MetaFX is a contract exchange, so rates vary slightly for perpetuities and term contract trans-actions: delivery fees (excluding)

Contract trading logic

How are STP orders executed? First of all, the trader is always in the client agreement with the trader, and the trader has an agreement with the liquidity provider (bank or other broker), so there will be no relationship between the trader and the liquidity provider.

So, at this time, it is obvious that the trader's order cannot be placed directly to the liquidity provider, so what should we do?

A trader places an order at a dealer.

Traders place orders with liquidity providers.

The liquidity provider fills the trader's order.

The trader fills the trader's order.

Price mechanism

The trading price of MetaFX comes from automatic quotations from multiple liquidity providers and banks. The weighted average formula is: X1 X2 + Y1 Y2 + … =P (platform price).

Where X1, Y1 is the price of decen-tralized exchanges or predictors of different sources, X2, Y2... as the weighted number, X2 + Y2 + … =1

At present, data sources include: FXCM, LMAX,BINANCE, , Finalto, dukascopy, etc., the syn-thetic price P after feeding the weighted price, namely the platform price of MetaFX.

Advantages of STP Implementation

For brokers, risks can be hedged. According to the latest definition of MiFID II, brokers have never faced market risks during the entire transaction execution process, that is, STP brokers will be very, very safe.

For traders, with STP technology, brokers transmit orders directly to liquidity providers, which can avoid potential risks between customers and brokers, and avoid brokers' inability to hedge risks and make traders unfavorable behavior.