STP (Straight Through Processing) Definition
Straight Through Processing is a term that is commonly shortened to STP. You may see this abbreviation mentioned on many Forex broker websites. It implies that the broker is not benefitting from your losses themselves because they process your orders straight through to their counterparty. By definition brokers simply broker a deal between you and their counterparty. It’s considered to be a concept of trust, it means that your broker is not acting as the counterparty and thus there is no conflict of interest. Brokers can have different policies from one another. Even a single broker can have different account types that work with different policies.