Payout Ratio: What FX Traders Need to Know

Payout Ratio Forex is a measure of a broker’s liquidity. It reflects the amount that a broker will pay a trader for each trade that he/she executes. By calculating the Payout Ratio, traders can assess the amount of liquidity that a broker has and decide whether they want to enter or exit trades with the broker. The higher the Payout Ratio, the better the liquidity for the trader. This ratio is especially important for traders who want to maximize their profits and minimize their risks when dealing with certain brokers.

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