Broker Technology Glossary
Short, sourced definitions of the trading and brokerage terms that come up when you plan, launch or run a forex broker or prop firm. Each entry starts with a plain definition and then explains what the term means for an operator.
FxTrusts supplies brokerage and prop firm technology, so these definitions are written from an operator's point of view. They are general information, not legal, tax or investment advice.
Terms
Market Maker Definition: How Brokers Take the Other Side of a Trade
The market maker definition, in plain terms: a firm that stands ready to quote both a buy and a sell price and deals against its own capital, so it can be the counterparty to the other side of a trade. In forex, a broker running a market maker model fills client orders from its own book.
CFD Meaning: What a Contract for Difference Is
CFD meaning: a CFD, or contract for difference, is a derivative in which two parties exchange the change in price of an underlying asset, such as a share, index, commodity or currency pair. The buyer does not own that asset. Profit and loss settle in cash, and positions are usually leveraged, so losses can be large relative to the deposit.
NDF Meaning: What a Non-Deliverable Forward Is
NDF meaning: a non-deliverable forward (NDF) is a forward FX contract on a restricted currency. The two parties agree a rate now, settle the difference against a fixing rate on a set date, and pay that difference, usually in US dollars. No restricted currency is ever delivered.
What Does DMA Stand For? Direct Market Access Explained
DMA stands for direct market access. In forex broker usage it often describes a setup in which a client order is passed through the broker’s infrastructure to a liquidity provider or venue, rather than being filled against the broker’s own book. The label is used loosely, so the contract, routing rules and execution records decide what actually happens.
What Is a Funded Account in Trading?
A funded account in trading is a trading account a prop firm provides under its written rules, usually after the trader passes an evaluation, although some firms offer one without an evaluation. Any profit split follows the firm's terms. Trading CFDs and forex carries a real risk of loss, which a funded account does not remove.
White Label in Forex Brokerage: Definition and Models
White label forex brokerage is a model in which a firm runs a brokerage under its own brand on trading technology supplied by another provider. The provider keeps the software and sets the contract terms. Regulatory permission comes from a regulator, not from the technology contract, so a platform licence and a regulatory licence are separate questions.
Related guides
- How forex brokers make money
- Execution broker explained
- Forex netting vs hedging on MT5
- What is a MetaTrader server?
- Brokerage as a service (BaaS)
For longer, source-cited answers on brokerage operations, see the trading and brokerage answer library and the broker technology knowledge base.
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