[STP] Straight Through Processing

In the foreign exchange industry, STP (Straight Through Processing) refers to a broker that passes trades directly to a liquidity provider (usually a large bank or financial institution). This ensures fast order execution, minimizes conflicts of interest, and provides transparent market prices. STP is different from market making, where the broker may be on the other side of the trader’s position. STPs are sometimes compared to ECNs, which are direct platforms for market participants to trade with each other.