What's the Difference Between Straight Through Processing and Dealing Desk Account in Bitcoin Trading?
STP BTCUSD Trading Account Bitcoin Trading vs DD BTCUSD Trading Account Bitcoin Trading
STP BTCUSD Trading Accounts
STP BTCUSD Account stands for Straight Through Processing, the STP BTCUSD Trading Account crypto brokers will send client orders direct to their Bitcoin Trading Liquidity Provider, the Bitcoin Trading Liquidity Provider is a large bank with deep liquidity to trade on inter bank network.
An STP BTCUSD Trading Account provided by an STP cryptocurrency trading broker can either have one Bitcoin Trading Liquidity Provider or many liquidity providers.
The best thing about STP BTCUSD Trading Accounts is that cryptocurrency traders can place their cryptocurrency trades immediately with instant market execution because they have access to interbank markets via their STP cryptocurrency trading broker.
STP BTCUSD Accounts won't charge commissions, but will charge spreads on cryptocurrency trades. Because Bitcoin traders have access to the interbank markets trading execution, there's no re-quotes on the crypto orders neither any order waiting for execution, the trade order execution is instant.
DD BTCUSD Trading Accounts
DD stands for dealing-desk, these DD account crypto brokers have a dealing desk execution model where they can match orders and execute bitcoin order in the online bitcoin market.
The bitcoin trader trading with a DD account will get a lot of re-quotes.
Dealing Desks will issue bitcoin traders with a lot of order re quotes, meaning bitcoin prices of orders are not real time and the cryptocurrency broker can requote a bitcoin trader's order if the bitcoin price of the btcusd market changes quick enough before the broker's dealing desk places the trading order online or before they match the order in online bitcoin market.
Dealing Desk accounts therefore means that order execution of cryptocurrency orders is not instant and therefore this execution model might mean that orders executed using a DD BTCUSD Account aren't executed as quickly as when compared to an ECN account or an STP trading account.
