What are A-book and B-book Models of FX Brokers? ☝

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✅ The Difference Between A Book and B Book Brokers ☝ http://www.financial-spread-betting.com/
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A, B and C Models for Retail Brokers. What is A book vs B book in forex trading? How do brokers classify clients based on risk and on which criteria are they added in the A-book or B-book? Are you a B book client? What are A-book and B-book models of FX brokers? Is B-book execution really that bad? OK.

The "A-book" references trades that a broker receives and are channeled on to the inter-bank market with the broker clipping a ticket. The other option is the 'B-book' which is made up of trades that a broker hasn't passed on to the market but taken on themselves.

The Difference Between A Book and B Book Brokers

Let's discuss A-book B-book and Hybrid Models. How do brokers make money and what is each model about?

A Model
profit from the spread only model.
pass trades straight through to a bank via an ECN and they will make money on the difference between the price that they are dealing at and the price that they're giving it to you at.
money made on retail wholesale model.

B Model
hedge; because brokers get so much clients flow, brokers can work out where they are over-exposed and hedge risk where appropriate.
trade against clients
flexible
more lucrative
less desirable

C Model
Anything else to extract value.
Say 70% of the 'B Model' and 20% of the 'A Model'..etc

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