Dealer/Broker Inventory Control Risk

 

Hi, I'd like to understand the market micro structure in the financial markets relating to forex, i was wondering how the broker/dealer deals with Inventory risk when they take on risk of e.g. a client buying 1m euros how do they deal with this risk when they are on the other side short, and the half life of the risk, thanks.

Kind Regards,

Denis

 

Yes broker should always be regular and we should not deal with no regular broker. we should always check security of a broker we are going to deal with.

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