A system which automatically eliminates imbalances in liquidity providers and allows to quickly eliminate imbalances of open positions in accordance with the size of the deposit and other parameters, thus helping avoid stop-outs on the counterparties' accounts.
If a broker has chosen the option of using AMTS Aggregator and connecting it to several providers, the broker must oversee the account load of providers and eliminate imbalances of open positions. If the order is opened by a single provider and closed by the other, then the client has no open positions and the broker has two positions. If this process is not regulated, it may gradually cause uncontrollable situation and possible stop-outs in a broker’s account.
Some companies use an order closing model from the same provider who opened the orders, though this option has several drawbacks:
- If the performance is not impaired, the broker loses profit by closing at the same provider, unless the latter offers a better price;
- Statistics of customer slippage will be worse since orders are often closed not at the best price, and customer loyalty will decline;
- Regulated jurisdictions require execution according to the principle of "Best execution", and closing orders not at the best price breaks this principle, which may lead to fines;
- Companies prefer not to donate large sums of money.
We offer our system which automatically eliminates imbalances, free of charge. Imbalances are eliminated by shifting the provider’s priorities, without any additional costs.