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Dark underworld of forex trading: "A-books" and "B-books"

B-Book Forex Brokers.

What is the A Book and B Book that forex brokers use? Forex trading is different from investing in shares or futures, because a broker can choose to trade against his clients. This system used by "Dealing Desk" Market Maker brokers is known as "B booking". The B Book - used by Market Maker brokers. Forex brokers that use a B Book keep . Spot Forex differs from many other financial instruments as it is possible for the brokerage to take the other side of customer trades. This is where the distinction between the A and B book comes in, with many hybrid brokerages operating both an A and B book.

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Oct 12,  · What is A Book vs B book in Forex trading? Forex is different from equities or futures trading because your broker can choose to trade against you. This is known as B booking. When your broker sends all your trades to the real market or their liquidity providers, this is known as A Booking.

Los usuarios también visitaron. Gracias por el apunte Luis! IG markets holds the largest B book in the world http: Bastante lioso con lo de las perdidas maximas y con la regresion a la media. Guía de Criptomonedas y Blockchain. Descubre nuestras otras comunidades: La web para los profesionales de la gestión patrimonial Verema: The dark underworld of forex trading http: The industry's dirtiest little secret is the extent of trading profits that brokers earn by directly taking on their muggiest punters.

While some platforms act like true brokers others are more akin to bookmakers. They're understood to split their trades into what is known in the industry as "A-books" and "B-books".

The "A-book" describe the trades the broker receives that are passed on to the inter-bank market with the broker clipping a ticket. The alternative "B-book" consists of trades that the broker has not passed on to the market but taken on themselves. Why would brokers take on their clients?

Because an estimated 95 per cent of retail traders are pre-programmed to fail, which means the brokers will ultimately win by taking them on rather than passing them off to the market. The existence of leverage amps up the movements in clients' positions, making it more likely that a stop-loss mandatory sell order will be triggered, speeding up the inevitable loss. And with brokers trading against their clients, they may possess the ability to tilt the game in their favour.

This includes inserting charges such as "cost of carry" that retail punters have little chance of reconciling. It has also been suggested the brokers can and do widen their bid-to-offer spreads momentarily to hit the stop-losses, forcing a loss on the client.

The B-book does carry risks that a large savvy trader will bet big and win, which means the larger accounts are shifted to the A-book where the broker pays an inter-bank dealer a fee.

But insiders are convinced it is an integral part of several of the brokers' business models that required them to constantly market for new clients. Cottage industry of trading analytic firms As evidence of B-booking's prevalence, a cottage industry of trading analytics firms has sprouted up to help brokers identify which clients have even the faintest idea what they're doing.

They're then shifted to the A-book. And now come the "journalists" following the trail of blood. Why do they never write these "exposes" on their own time without a precipitating event? Thanks for dropping by! Ducascopy is marketplace model like stock exchange , where traders can see their own bids and offers in the depth of market when they place a limit order , while bids and offers limit orders Global Prime are executed as a market order when the price is triggered.

Global prime offers liquidity receipts to traders to show them they who was the liquidity provider who filled their trade. Hi there, I am a late arrival here. Looks like a descent firm on the surface. Do you have an opinion? By the way I love Singapore, I was there a few weeks ago visiting a fund manager friend based in Singapore. I feel fortunate to reside in Singapore too. We also offer discounted commissions If in the future you would like the For the other brokers, you will be able to find out by checking through their customer agreements or legal documents on their website.

Thanks, Linton, for the valuable services you are providing us private fx traders. I have been trading for many years, and I have not seen a broker who does not hunt SL.

That has been the reason I could not sign up with them a couple of years ago. You can get a stop loss or TP stealth EA here: However, to be honest with you, all the brokers on my website do not hunt stop loss.

You can consider opening a free account with them. Ducascopy still does not offer MT4, but they provide a third party bridge to use MT4 to connect to their Jforex platform. Instaforex is most likely B book, and they will send their consistently profitable clients to A book.

If you would like to increase your know-how simply keep visiting this web page and be updated with the newest news posted here. I like the valuable info you provide on your articles. I am rather certain I will be told many new stuff right right here!

Best of luck for the next! Hi Linton, what about Purple Trading former Axiory broker? Thanks for your opinion. I believe these brokers are not pure A book, because if they were, they would proudly advertise it, like Global Prime.

Hi Linton, many thanks for sharing broker types. I have another few brokers, could you please let me know are they A or B types? Just to be doubly sure, you can read their legal documentations on their website, the one most people ticked that they read the terms and conditions of the agreement when they signed up for the broker.

In there, it will usually say whether the broker can trade against you or not. We have recently launched our A Book Trading Brokerage, and would like to get our brand out there. Our website is http: Let us know what you think. I believe capital index is a B book broker.

Usually spread betting brokers are B book or hybrid model. I have been looking at your website very good. On there website they say pure STP. I paid for education 10k through them with learn to trade. It meens they teach me wrong info. I have combed through their Terms and Conditions.

What section could the counterparty info normally be found? I did find these terms though. The Company in accordance to its CIF authorisation is authorised to provide the following investment services which are governed by this Agreement: Reception and transmission of orders in relation to the Financial Instruments the Company is authorised to provide.

Execution of orders on behalf of clients. You can also find all their terms and conditions here: So I believe they are either a B book, or Hybrid model, because they having a dealing room if you are pure A book it is not necessary , and it says above that BDswiss will always act as a counterparty when the company executes an order on behalf of the client.

Give Global prime or IC Markets a try. Using our promocode link. Sign up Global prime: They are actually a representative or white label of Synergy Financial Markets. Check this page out: Synergy is hybrid broker. I am shocked to hear that. I think that is legal, since some brokers say there will be a conflict of interest between the client and the broker as the broker can act as a dealer. This could also be a very Grey legal area and I would suggest you do not take up their offer. Instead I would think long term and grow my clients assets.

If you are very serious about trading with a broker that does not trade against you, you can try Global Prime, or IC Markets. Open an account with me: Extremely helpful information ….

I have never traded in my life but wanted to enter to FX market. Need your professional advise in whether Managed accounts are effective and should I prefer to go with them as against trading of my own? As currently I will not be able to devote as much time as needed. Also can you refer some best managed account brokers. Thanks for the clarity.

Even many of the stock brokers not offering GSL. I am just afraid of stock slippage as I lost earlier. The brokers are not stupid to give you a guaranteed stop loss for a cheap price. Think of GSL as buying an insurance — the person who buys the insurance never wins, but he has a peace of mind and has hedged his risk. My suggestion is try not to buy stocks that are on a downtrend — this is where market can gap down, and cause big losses which requires a GSL. Also, try not to buy stocks near resistance this is also where stocks can gap down and cause big losses, requiring a GSL.

Greetings from Ukraine Linton! Justing writing to thank you for your website no reply required as you must be busy. Since IC markets offer The reason is for this is the different regulation the US government and others, is that correct?

En el mercado Forex , a diferencia de cualquier mercado organizado como puede ser el de futuros, opciones o el de acciones, el broker puede elegir ser la contraparte del cliente o " llevar su orden a mercado ". Éste consiste en dar contrapartida a todos aquellos traders perdedores a largo plazo y llevar al mercado las órdenes de todos aquellos traders ganadores a largo plazo y simplemente cobrarle las comisiones correspondientes.

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