What is Difference Between Dealing Desk Account and Market Maker Commodities Trading Account in Commodity Trading?

DD Commodities Trading Account vs Market Maker Commodities Trading Account

DD Commodities Trading Accounts

DD stands for dealing desk, these DD account commodity brokers have a dealing desk execution model where they can match orders & execute commodity trading order in the online commodity market.

The commodity trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue commodity traders with a lot of order re quotes, meaning commodity prices of orders are not real-time and the broker can requote a commodity trader's order if the commodity price of the commodities trading market changes quick enough before the broker's dealing desk places the trading order online or before they match the order in the online commodity market.

Dealing Desk accounts therefore means that order execution of commodity orders is not instant & therefore this execution model may mean that orders executed using a DD Commodities Trading Account aren't executed as quickly as when compared to an ECN trading account or an STP account.

MM Accounts

Market Maker Commodities Trading Accounts are commodity broker accounts where Market Maker commodity brokers have a dealing-desk execution model where they can match orders in-house without going to the online commodity market.

Commodity Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This commodities trading broker can make the decision to either execute a commodity order that is the opposite of a commodity trader's order thus if the trader makes a loss the broker makes a profit, & if commodity trader makes a profit the broker makes a loss.