Dealer in Forex
A clear definition of Dealer, with practical context for reading markets and making better trading decisions.
Definition
Definition
A dealer is a market participant that is prepared to buy and sell for its own account, often quoting prices to other participants. Unlike an agent that simply arranges a trade, a dealer may become the principal counterparty.
How It Works
Electronic markets separate the price you see, the instruction you send, and the final execution you receive. Available liquidity, order type, venue rules, and market movement can all affect what happens between those steps.
Why It Matters
This vocabulary lets you read a broker or platform screen accurately. The goal at Level 2 is mechanical literacy - knowing what a displayed price, order status, or execution record means - rather than predicting the market.
Key Takeaway
A dealer is a market participant that is prepared to buy and sell for its own account, often quoting prices to other participants.
Practical forex example
Why Dealer matters
Understanding Dealer helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
Turn the definition into trading skill.
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