Forex industry has a small and dirty secret… It's unpleasant for traders themselves, and What is the difference between A-book and B-book brokerage model. Which is better for us, ordinary traders? In Forex trading the term A book implies that your broker uses STP or Straight Through B Book execution may look the same from the outside but it's quite different when we look under the hood. Forex Books for Beginners. General Market Books. The A-Book brokers finals the orders straight to the interbank market. The trades are matched with other traders' orders.
Why the B book is different. Essentially the broker takes the other side of the trade, at least for a period of time. Why do they do this, and does it mean they are in conflict with you the client? The B-book model is a forex risk model that can bring quick and high profits, as well as drive a broker into depression. B-Book brokers process their clients' orders in house and act as market makers.
Spot Forex differs from many other financial instruments as it is possible for the brokerage to take the This is where the distinction between the A and B book comes in, with many hybrid brokerages ROBOT FOREX PREMIUM 2021_3491.
B book forex brokers typically charge a fixed spread which you pay for every time you open or close a position. This again has some advantages and drawbacks. B-book broker is also referred as a market maker, but not necessarily. Learn why forex brokers choose to B-Book even though it exposes themselves to market risk and losing B-Book brokers prefer to have a lot of similarly sized customers who trade as frequently as
B-Book forex brokers take the opposite of a customer's trade and accept the market risk. This is known as "B-Book execution".
Now what about the B-book forex brokers? As you may have guessed, the market makers always have the B-book system in operation. MM Forex Brokers STP Forex Brokers DMA Forex Brokers ECN Forex Brokers A-book Forex B-book means orders are filled inside the Dealing Desk, with the broker being the counterparty.