In the foreign exchange trading industry, liquidity clearing systems serve as a bridge between liquidity providers and trading platforms, playing a crucial role in liquidity integration and price formation. By embedding a liquidity clearing system into their trading platforms, brokers can more easily connect with multiple liquidity providers to secure the best possible prices.
There are many liquidity clearing systems on the market, and among them, Leverate’s LXCAPITAL provides brokers with a top-tier liquidity solution that enhances the efficiency of resolving liquidity issues. Overall, LXCAPITAL offers the following key advantages:
Instant Trading
When liquidity is sufficient, traders should receive continuous quotes, meaning they can execute trades immediately based on the quotes provided by the trading platform. However, if there is a lack of liquidity, a trader’s order—or part of it—may only be filled at the next available price or may be delayed, potentially resulting in significant slippage.
LXCAPITAL is a liquidity clearing system launched by Leverate, an Israeli fintech provider. Designed specifically for forex brokers, this software provides brokerage firms with access to a liquidity pool comprising top-tier financial institutions. This abundant liquidity ensures that traders’ orders are filled immediately whenever they wish to trade.Built on high-end infrastructure, LXCAPITAL ensures virtually no delay in the execution of client trades, minimizing instances of failed trades and slippage.
Multi-Asset Liquidity
In addition to foreign exchange, financial markets offer a wide variety of other investment products, including securities, futures, cryptocurrencies, and more. Because investing in financial markets carries significant risk, most investors adopt a multi-asset investment strategy to diversify their risk. In this context, foreign exchange may be just one asset among many in their multi-asset portfolio.
As a result, many brokers have begun offering multi-asset liquidity to investors. Leverate’s LXCAPITAL provides traders with multi-asset liquidity, primarily covering forex, cryptocurrencies, and stocks.Brokers looking to expand into multi-asset trading can manage product portfolios across different asset classes within the LXCAPITAL system, which helps them diversify their brokerage operations and fully meet their clients’ investment needs.
Fully Transparent Price Formation
Connecting with multiple liquidity providers is a common practice for brokerage firms to secure sufficient liquidity and mitigate liquidity risk. Since the various liquidity providers a broker connects with offer different quotes, and the final execution price is determined from among these numerous quotes, traders typically want a full understanding of how the trading price is formed.Brokers can alleviate client concerns by increasing the transparency of their liquidity systems.
Leverate’s LXCAPITAL liquidity system is fully transparent, allowing traders to view the prices provided by liquidity providers at any time and fully understand the order pricing process. At the same time, LXCAPITAL helps brokers match the best available prices, narrow the bid-ask spread, and secure competitive quotes.
