Is there any difference between the terms prime broker, prime of prime broker and liquidity provider? Or are all of these terms the same thing?
There are second brokers who provide liquidity or take business from retailers brokers who provide possibility to speculate derivative financial assets.
A liquidity provider (LP) is a very broad term. Regarding forex, the role of an LP is discussed in this lesson.
LPs act as hedging counterparties (“liquidity providers”) to retail FX/CFD platforms.
In order to transact with LPs, a retail FX/CFD provider requires the services of a PB or PoP.
A prime broker (PB) and a prime or prime (PoP) are not the same thing. The differences are explained in this lesson in our School of Pipsology.