In our ongoing series exploring the intricacies of pricing in the world of finance, we've shed light on the methods used by institutions, banks, and brokers to generate prices. These insights have elevated your understanding beyond that of the average trader. Now, it's time to delve into the unique approach of Exness, where our pricing strategy stands out for being “better-than-market” standard. Here's an in-depth look at how and why we achieve this.
The Foundation of Quality Price Sources
At Exness, we place immense value on the accuracy and authenticity of information. Our mission is to mirror the real market state as closely as possible, and to achieve this, we focus on three key elements:
- Diverse and High-Quality Data Sources: We collaborate with a variety of reputable exchanges, data vendors, and trading venues, ensuring a rich diversity of price data.
- Rigorous Quality Monitoring: Each feed for every instrument is constantly monitored, guaranteeing that it always aligns with our high standards.
Ultra-Fast Price Source Connectivity
Speed is of the essence in pricing. We employ custom-built solutions to connect with our price sources, like cross-connecting in LD4, to minimize latency and ensure real-time price updates.
Sophisticated In-House Price Aggregation
Our process involves more than just receiving raw prices. We meticulously analyze thousands of bid and ask ticks, selecting the optimal feeds for each instrument. Then, our proprietary algorithms aggregate this data, creating a unique Exness price with our own carefully configured spread for each instrument.
Holistic Pricing Protocol
We oversee every aspect of the pricing process, from provider connections to aggregation. This comprehensive control allows us to offer prices that reflect the real market and align with top market participants, while also acknowledging that minor discrepancies with smaller liquidity pools may occur.
Commitment to Off-Market Pricing Integrity
In the rare event of receiving an off-market price that impacts our pricing, our response is immediate and responsible. We prioritize minimizing client impact, compensating those affected, and improving our models to prevent future occurrences.
The Exness Secret: Principles for Better-Than-Market Pricing
Our secret lies in a set of core principles:
- Continuous, Unfiltered Pricing: We maintain pricing without interruptions post-market news, filtering minimally, and leveraging a diverse array of price sources.
- Innovative Pricing Logic: Developed by our team of skilled quantitative researchers, our unique methodology ensures stable and tight spreads, even in fluctuating market conditions.
- Client-Focused Spread Management: Our goal is to maximize client success. We offer tight, stable spreads and execute orders without market impact, resulting in spreads often tighter than the actual market.
- Responsive to Client Feedback: We value client input, using it to refine our services continually. A dedicated team oversees pricing to guarantee a seamless trading experience.
The Outcome: Refined Pricing for Over 700K Active Traders
The culmination of our efforts is a pricing model that accurately mirrors the market state, with reduced spread reactions to volatility, illiquidity, or major news events. This approach has made us the preferred choice for over 700,000 active traders, who benefit from our commitment to providing the best possible trading conditions.