A "white label" is a trading platform that, against a position executed by the client, enters an identical position with a broker or other financial institution. For example, if the client of the arena enters a position of $5,000 in the dollar rate, the arena "covers" the same position against another broker, so that the more the client earns his money, the more the arena will profit accordingly and cover his profits with the profits earned by the other broker. The questioner will ask - what is the profit that grows in this arena as a result of the activity? In the framework of the discussion before me, two possible sources of profits from such an arena were presented: one - from the commissions that the client pays for the volume of positions he enters ("his trading volume"). These fees can be based on a percentage of the volume of transactions or alternatively from variable spreads between the exchange rate of the transaction with the broker and the buy and sell prices displayed and given to the client. It should be noted that the unit of measurement of these differences is "pips". and the second - bonuses that the arena receives from the broker. In this latter context, the more the arena is covered for all its clients and it operates with a high volume of activity (which constitutes the total investments of all clients), the higher the bonuses it can receive for its activity.
A trading arena that "makes a market" - a trading arena that is not covered, i.e., it is the one that operates with the client in such a way that if the client makes a profit, it will have to pay him his profits, while if he loses, it will be the one that will win the money he loses. In this type of activity, there is ostensibly a conflict of interest between the customer and the arena, since, as stated, the arena operator makes a profit when the customer loses, and vice versa. I will note that this activity is based on the principle that the results of the client's activity (due to the fees he pays) will necessarily lead to the erosion of his investment, which will remain with the operator."