What is Difference Between DD and Market Maker Commodities Trading Account in Commodities?

DD Commodities Trading Account vs Market Maker Commodities Trading Account

DD Commodities Trading Accounts

DD stands for dealing desk, these DD account commodity brokers have a dealing-desk where they can match orders & execute commodity order in the online interbank commodities market.

The commodity trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue commodity traders with a lot of order re quotes, meaning commodities trading prices of orders are not real-time & commodity broker can requote a commodity trader's order if the commodities trading price of the commodity market changes quickly enough before broker's dealing desk places the trading order online or before they match the order in the online interbank commodities market.

Dealing Desk accounts therefore means that order execution of commodity orders is not instant and therefore this execution model might mean that orders executed using a DD Commodities Account aren't executed as quickly as when compared to an ECN trading account or an STP account.

MM Accounts

Market Maker Commodities Trading Accounts are commodity broker accounts where Market Maker commodity brokers have a dealing desk where they can match trading orders in house without going to the online interbank commodities market.

Commodities orders can also be executed against their traders - meaning the broker can take the opposite side of a commodity traders open trades.

This commodity broker can make the decision to either execute a commodity order that is the opposite of a commodity trader's order thus if the trader makes a loss the broker makes a profit, & if the trader makes a profit the broker makes a loss.