What Is STP And How Does It Work?
Straight-Through-Processing or STP technology is a form of electronic order processing in which transactions are executed directly into a financial market without human intervention. SFX Markets uses this STP technology exclusively when acting as an intermediary between its clients and market-making liquidity providers that consist of top-tier banks and financial institutions.
The use of STP technology seems most beneficial to those that require the rapid execution of orders into the market at competitive prices. In particular, large asset managers, professional traders, scalpers and those engaged in high-frequency algorithmic trading (HFT) activities often prefer to use STP technology to handle their orders.
Advantages Of STP Technology
SFX Markets’ use of STP technology offers a number of significant advantages to its clients that include:
- Fast order execution. All of our clients’ orders get forwarded directly to liquidity providers without any delay, which guarantees you the best execution times and prices.
- No trading restrictions. Using STP technology allows us to place no restrictions on the trading methods our clients employ. This means you can use all types of Expert Advisors (EAs), including scalping and HFT algorithms.
- No conflict of interest. SFX Markets exclusively processes client orders using STP technology and earns commissions from sending these orders to liquidity providers. This means our only interest lies in our clients’ trading volume and continued profitability.