Current Location： Home» » Full text
-
Spot Forex best forex rebate different from other financial instruments because the broker may become the counterparty of the client, which is where the A-book rebatesinforex bestforexrebate cashback forex model differ There rebatemeaninginforex also many hybrid rebateinforextrading who use both models A-book model If the broker passes the clients order to a liquidity provider or multilateral trading platform, this is the A-book model -book modelIn this case, the broker earns revenue through spreads, or commissions, and there is no conflict of interest between the broker and the client because the broker earns the same profit whether the client is profitable or not True STP/ECN brokers only operate the A-book model, and they pass all client orders to liquidity providers B-book mode If brokers do not pass customer orders to liquidity providers or markets, it is the B-book mode These brokers are also known as market makers and are counterparties to their customers These brokers can better control the risks associated with the B-book mode through a number of risk control strategies, such as internal hedging and spread float Obviously, operating the B-book mode This is why many brokers operate both models, passing a portion of customer orders to liquidity providers and leaving another portion within the brokerage This hybrid model is very profitable and is used by many brokers nbsp;Hybrid model The hybrid model is very profitable and is used by many brokers nbsp;Hybrid model The popularity of the hybrid model is understandable, as it can improve the overall profitability of brokers In addition, in this model, brokers simply pass orders to a variety of liquidity providers can be profitable at the same time, so that customers are also profitable The key to controlling the risk of hybrid brokers is to classify customers, that is, customers into A-book Traders with very small trading volumes (statistically speaking, accounts with very small trading volumes are less likely to be profitable) Mixed models are not necessarily a bad thing for traders, as many mixed brokers are still very competitive as far as spreads are concerned For the profits gained by B-book model clients (that is, the brokers losses), the broker can compensate by increasing the A-book model clients This spread is obtained from the liquidity provider If the hybrid model brokers have poor risk control, they can make themselves lose a lot of money due to B-book model customers Summary Many brokers classify their customers and transactions according to their specific circumstances A-book model customer orders are passed directly to the brokers liquidity provider, while other orders are are classified to the brokers B-book model Many brokers are hybrid, and there is nothing inherently bad about this model However, many traders prefer to trade with STP/ECN brokersMore great recommendations：
Source： What is the meaning of A-book and B-book in Forex trading Welcome to share this article, please retain the source of reproduction！
-
Read more： xm-mt4-download
What is the meaning of A-book and B-book in Forex trading
2023/2/26 17:55:40 Classification: Participation: 5
Related articles
-
Random article reading
-
- Foreign exchange trading market want to profit there is no skill
- The foreign exchange speculation these hurdles can not pass your technology and then B is ultimately a loss of goods!
- Foreign bank loans
- What is the real forex short term trading
- Forex Fundamental Analysis Study 1 - What is Fundamental Analysis
- Bounce line potential market
- 4 Hourly MACD Forex Trading Strategy
- The concept of spot foreign exchange trading and related terms
-
Hottest Articles of the Month
-
- Metatrader 4 Web Trading Platform
- How to Be a Trader Forex Yang Sukces
- Mark Rose Forex Trader Review
- How to Trade Currency Pairs in Forex
- Can I Have Someone Trade Forex For Me?
- What Is a Forex Trader and How Can You Become One?
- Interactive Brokers - Trading Forex in the US
- Ken Githaiga - A Kenyan Forex Trader Who Has Been Successful
-
Latest Article Comments
-
-
Links
-