Prime Of Prime - PoP

Filed Under »
Dictionary Says

Definition of 'Prime Of Prime - PoP'

A brokerage that provides service to traders (especially Forex traders) who need micro-contract trades. Prime of Prime (PoP) brokerages also often allow for trades of greater leverage and, as a result, more risk. Many of the brokers using PoP brokerages are small regional banks with clients that need smaller currency trade options.
Investopedia Says

Investopedia explains 'Prime Of Prime - PoP'

One of the reasons that regular forex prime brokerages don't provide the services that PoPs do is that there is a smaller profit margin in the smaller trades. Additionally, their systems often don't support a cost-effective way to complete smaller trades. PoP brokerages are also equipped to deal with increasing regulatory requirements for highly leveraged trades.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Broker

    1. An individual ...
  2. Prime

    A classification ...
  3. Forex - FX

    The market in ...
  4. Authorized Forex Dealer

    Any type of ...
  5. Jobber

    A slang term for ...
  6. Fast Market Rule

    A rule in the ...
  7. Inside Market

    The spread ...
  8. Bid

    1. An offer made ...
  9. Cambist

    An individual or ...
  10. Digital Currency Exchanger - DCE

    A market maker ...

Articles Of Interest

  1. Market Makers Vs. Electronic Communications Networks

    Learn the pros and cons of trading forex through these two types of brokers.
  2. Understanding Forex Rollover Credits And Debits

    Forex trades are subject to receiving interest or being debited interest if positions are held overnight.
  3. Retail FX Spreads: Do They Even Matter?

    Learn how retail forex spreads affect your ability to trade currencies.
  4. The Pros And Cons Of Trading Forex In An Overseas Account

    The Dodd-Frank Act of 2010 could impact whether overseas accounts benefit FX investors.
  5. Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  6. 5 Tips For Selecting A Forex Broker

    Discover the best ways to find a broker who will help you succeed in the forex market.
  7. How To Place Orders With A Forex Broker

    Learn how to set each type of stop and limit when trading currencies.
  8. Getting Started In Forex

    Before entering this market, you should define what you need from your broker and from your strategy.
  9. How To Pay Your Forex Broker

    There are three types of commissions used in this market. Learn how to get the best deal.
  10. The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center