Prime Of Prime - PoP

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DEFINITION

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 EXPLAINS

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.


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