All trades that are executed on Kingsmen Markets are sent Straight Through Processing (STP) to the respective Liquidity Providers (LP). This ensures that trades that were executed are valid and not manipulated by external factors such as arbitrage trading.
The process goes like this:
- Client will execute trade from the MT4 platform
- Order requests will be sent to the LP for confirmation
- LP will verify the order request and either accept or reject it
- LP will return the confirmation back to MT4 platform
- MT4 will open the orders if the confirmation is TRUE and vice versa
In summary, all trades that are being sent to the LP will be verified and executed if it is valid and rejected if it is not.