Desk

In the context of Forex trading, “desk” refers to the trading desk or dealing desk of a Forex broker or financial institution. The desk is the department or unit responsible for executing and facilitating client trades in the Forex market.

The trading desk is where Forex brokers receive and process client orders, provide pricing and liquidity, and execute trades on behalf of their clients. It is essentially the intermediary between the client and the market. The desk is staffed by traders, dealers, and support personnel who are responsible for managing and executing trades.

There are two main types of trading desks in Forex:

1. Dealing Desk (DD): Also known as a market maker, a dealing desk acts as the counterparty to client trades. When a client places an order, the dealing desk executes the trade by taking the opposite position. For example, if a client buys a currency pair, the dealing desk sells the same currency pair to the client. This means that the dealing desk profits from the spread, which is the difference between the buying and selling prices. Dealing desks typically offer fixed spreads and may have certain trading restrictions or limitations.

2. Non-Dealing Desk (NDD): A non-dealing desk broker, also known as an agency broker or STP (Straight Through Processing) broker, does not take the opposite side of client trades. Instead, they pass client orders directly to liquidity providers, such as banks or other financial institutions, to be executed in the market. Non-dealing desk brokers typically offer variable spreads, as they pass on the market prices to clients without any markup. This model allows for greater transparency and potentially tighter spreads.

It’s important to note that the term “desk” can have different meanings depending on the context and the specific Forex broker. Some brokers may use the term “desk” to refer to their trading department, while others may use it to describe a specific type of trading model or platform.

When choosing a Forex broker, it’s important to consider the type of trading desk they operate, as it can impact factors such as trade execution speed, spreads, and potential conflicts of interest. Traders should also consider their own trading style and preferences when deciding between a dealing desk or non-dealing desk broker.