<h2>What is a Dealer?</h2>
<p>A dealer, in the context of forex and CFD trading, is a market participant who buys and sells financial instruments to facilitate trading. They provide liquidity to the market and help ensure smooth execution of trades.</p>

<h2>How It Works</h2>
<p>Dealers, also known as market makers, quote both a buy and a sell price in a financial instrument, allowing traders to buy from or sell to them. The difference between these two prices is known as the spread, which is how dealers make their profit.</p>
<p>In the <strong>Straight Through Processing (STP)</strong> model used by STB Provider, dealers do not act as counterparty to trades. Instead, they facilitate execution by routing orders to liquidity providers. This ensures that traders get the best possible prices.</p>

<h2>Why It Matters for Traders</h2>
<ul>
  <li><strong>Liquidity</strong>: Dealers provide liquidity, making it easier for traders to enter and exit positions.</li>
  <li><strong>Tight Spreads</strong>: Competition among dealers can lead to tight spreads, benefiting traders by reducing transaction costs.</li>
  <li><strong>24/5 Market Access</strong>: Dealers facilitate trading during the forex market's extended hours, allowing traders to react to news and events as they happen.</li>
</ul>

<h2>Example</h2>
<p>Let's say you're trading EUR/USD on the <strong>MetaTrader 5 (MT5)</strong> platform provided by STB. You see the dealer's quoted price at 1.1825/1.1827. This means you can buy EUR/USD at 1.1827 or sell it at 1.1825. If you decide to buy, the dealer will facilitate your trade, and you'll see the purchase price in your MT5 account.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Dealers provide liquidity and facilitate trading by quoting buy and sell prices.</li>
  <li>In the STP model, dealers do not act as counterparty to trades but help ensure smooth execution.</li>
  <li>Dealers benefit traders by providing liquidity, tight spreads, and 24/5 market access.</li>
</ul>