---
title: "Liquidity provider - Meaning & GFN's Figure - Get Funded Now"
description: "An institution that streams tradeable prices to brokers and venues - typically a bank or a specialist trading firm. Their aggregated quotes are what a…"
url: "https://getfundednow.com/glossary/liquidity-provider"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/liquidity-provider"
  pt-BR: "https://getfundednow.com/pt-br/glossary/liquidity-provider"
  fr: "https://getfundednow.com/fr/glossary/liquidity-provider"
  it: "https://getfundednow.com/it/glossary/liquidity-provider"
  de: "https://getfundednow.com/de/glossary/liquidity-provider"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Industry, legal and operations

# Liquidity provider

An institution that streams tradeable prices to brokers and venues - typically a bank or a specialist trading firm. Their aggregated quotes are what a retail price is ultimately built from.

Also called: LP

GFN’s figure

Strategies designed to compromise a broker or liquidity relationship are prohibited trading on a GFN account, alongside latency arbitrage and exploiting delayed or incorrect pricing.

In detail

## Liquidity provider, explained

The depth a provider offers at each price level determines how large an order can be filled without moving the price, which is what a trader experiences as slippage or the absence of it.

Providers widen or withdraw quotes when risk rises, which is the mechanism behind a spread tripling in the seconds around a release.

[Rules handbook](https://getfundednow.com/rules) · [More industry, legal and operations](https://getfundednow.com/glossary/category/industry)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Market maker](https://getfundednow.com/glossary/market-maker) - A participant that quotes both a bid and an ask continuously, profiting from the spread between them and carrying inventory risk in return. Market makers are what make an instrument tradeable in size at a predictable cost.
- [Liquidity](https://getfundednow.com/glossary/liquidity) - How much can be traded at a given price without moving it. Deep liquidity produces tight spreads and reliable fills; thin liquidity produces wide spreads, slippage and gaps.
- [A-book](https://getfundednow.com/glossary/a-book) - A brokerage model where client orders are passed through to external liquidity providers rather than held internally. The broker earns from spread and commission and takes no position against the client, so its revenue follows volume.
- [Broker](https://getfundednow.com/glossary/broker) - A firm that executes trades on a client's behalf and holds client funds to do so. It is a different business from a prop firm, with different obligations and a different relationship to the client.
- [Latency arbitrage](https://getfundednow.com/glossary/latency-arbitrage) - Trading on a price that is known to be stale because a faster feed has already moved. It profits from a delay in the environment rather than from any view about the market, and it is prohibited industry-wide.

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Source: https://getfundednow.com/glossary/liquidity-provider
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt