Aggregated feeds and what a liquidity pool really is

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Brokers describe their pricing as coming from a pool of liquidity providers. The details vary, and they affect what a trader sees and gets.

In some setups, the feed is a blend, with the best bid and best ask from several providers aggregated. The spread is tight, but the size available at the top of the book may be small. Larger orders walk through levels.

In others, a single provider supplies all prices, which can be stable but less competitive.

The broker's own markup or filtering may also be applied, creating a feed that differs from the raw sources.

What matters for scalpers is how the pool behaves under stress: do providers withdraw quotes during news, how does the spread behave, and what happens to execution.

Asking the broker about the number of providers, the aggregation method, and the use of last look gives a starting point. The answers are not always forthcoming, but the reaction is informative.

How much does your broker disclose about its liquidity sources?