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Professional4X
Jan 22 2019 at 17:57
1189 zpráv(a,y)
Adribaasmet posted:
What is A-Book and B-book? Unfortunately, I’m not aware of this kind of terminology.


In generalized simple terms you can consider 'A Book' trades to be handled via a liquidity provider, whereas 'B Book' trades are handled by the internal brokerage capital.





If it looks too good to be true, it's probably a scam! Let the buyer beware.
Professional4X
Jan 22 2019 at 23:58
1189 zpráv(a,y)
mohasasa posted:
- Last week I have contacted my broker and asked him to give me a statement that shows whether my trades were on their A-book or B-book.


What prompted you to ask the broker that?
Did something happen with your account?


mohasasa posted:
- They refused and told me that's confidential and we cannot share this information with our clients.


What does it say in your terms of service and account agreement paperwork?


mohasasa posted:
- What to do in this situation?


What situation? There isn't any situation to deal with. Is there some additional event that happened with your account that we are unaware of?

You asked the broker for confidential information and they told you that the information is not available to their clients.





If it looks too good to be true, it's probably a scam! Let the buyer beware.
mohasasa
Jan 24 2019 at 08:40
11 zpráv(a,y)
Professional4X posted:
mohasasa posted:
- Last week I have contacted my broker and asked him to give me a statement that shows whether my trades were on their A-book or B-book.


What prompted you to ask the broker that?
Did something happen with your account?


mohasasa posted:
- They refused and told me that's confidential and we cannot share this information with our clients.


What does it say in your terms of service and account agreement paperwork?


mohasasa posted:
- What to do in this situation?


What situation? There isn't any situation to deal with. Is there some additional event that happened with your account that we are unaware of?

You asked the broker for confidential information and they told you that the information is not available to their clients.


1. Every 2/3 years they change their forex quote from 4 to 5 digits then from 5 to 4 digits. So I asked them why over the years you change your FX quotes:- they said it is for better liquidity & execution.
11. Nothing happened to my account.

2. The last time I read their T&C, it was 10 years ago, so I don't remember.

3. OK

vontogr (togr)
Jan 24 2019 at 12:14
4859 zpráv(a,y)
mohasasa posted:
Professional4X posted:
mohasasa posted:
- Last week I have contacted my broker and asked him to give me a statement that shows whether my trades were on their A-book or B-book.


What prompted you to ask the broker that?
Did something happen with your account?


mohasasa posted:
- They refused and told me that's confidential and we cannot share this information with our clients.


What does it say in your terms of service and account agreement paperwork?


mohasasa posted:
- What to do in this situation?


What situation? There isn't any situation to deal with. Is there some additional event that happened with your account that we are unaware of?

You asked the broker for confidential information and they told you that the information is not available to their clients.


1. Every 2/3 years they change their forex quote from 4 to 5 digits then from 5 to 4 digits. So I asked them why over the years you change your FX quotes:- they said it is for better liquidity & execution.
11. Nothing happened to my account.

2. The last time I read their T&C, it was 10 years ago, so I don't remember.

3. OK


Perhaps change the broker
4 digits are outdated nowadays only used on cent account

Lead Sense (senselead)
Jan 27 2019 at 09:33
12 zpráv(a,y)
Hello Professional4X,

Yes A-Book a trader is sending the trades to the bank or liquidity provider via FIX ( Financial Information Exchange ) Protocol and B-Book means the Broker is keeping the trades.

If the broker keeps the trades and the trader wins, the broker has to put from his pocket but that almost never happens because he always cancels each trader out, here is a small and simple example:

From all traders together the broker have, 50 lot BUY EURUSD and 40 lot SELL EURUSD, they cancel each one out and the broker just has a risk of 10 lot BUY EURUSD.
Then the Broker send to the bank/liquidity provider 10 lot BUY EURUSD, pay big commission from it but has zero risk from his side.

So the Broker gets commission/spread from 90 lot and just pays smaller spread to the bank/liquidity provider of 10 lot.

The MT4 Server does not handle the trades to the bank or any of this, thats why we have to connect to it using old c++ code and handle it accordingly.

This is called a Risk Management System for a Broker, it is rent for a little as $5000 / month to them, or many big brokers has in house programmers and do it themselfes.

Also btw sending a trade to the bank is not easy.. they give you 50 different prices every second, you need to compare prices between different banks and liquidity provider in milliseconds and take a quick decision where to send the trade on the cheapest price..

Also sending 50 lot to the bank at once is NOT good, they give you very bad prices, thats why you need to slice the order down, send small pieces to different banks and in some cases even wait 1 to 10 seconds to refresh prices and keep sending the trades.. this is called the Order Slicer System for Brokers.

If you have more questions on how it works from the brokers side, just ask!
Happy Trading

Price is King, Volume is Queen, all the rest are just story tellers!
AniLorak
Jan 27 2019 at 10:53
917 zpráv(a,y)
senselead posted:
Hello Professional4X,

Yes A-Book a trader is sending the trades to the bank or liquidity provider via FIX ( Financial Information Exchange ) Protocol and B-Book means the Broker is keeping the trades.

If the broker keeps the trades and the trader wins, the broker has to put from his pocket but that almost never happens because he always cancels each trader out, here is a small and simple example:

From all traders together the broker have, 50 lot BUY EURUSD and 40 lot SELL EURUSD, they cancel each one out and the broker just has a risk of 10 lot BUY EURUSD.
Then the Broker send to the bank/liquidity provider 10 lot BUY EURUSD, pay big commission from it but has zero risk from his side.

So the Broker gets commission/spread from 90 lot and just pays smaller spread to the bank/liquidity provider of 10 lot.

The MT4 Server does not handle the trades to the bank or any of this, thats why we have to connect to it using old c++ code and handle it accordingly.

This is called a Risk Management System for a Broker, it is rent for a little as $5000 / month to them, or many big brokers has in house programmers and do it themselfes.

Also btw sending a trade to the bank is not easy.. they give you 50 different prices every second, you need to compare prices between different banks and liquidity provider in milliseconds and take a quick decision where to send the trade on the cheapest price..

Also sending 50 lot to the bank at once is NOT good, they give you very bad prices, thats why you need to slice the order down, send small pieces to different banks and in some cases even wait 1 to 10 seconds to refresh prices and keep sending the trades.. this is called the Order Slicer System for Brokers.

If you have more questions on how it works from the brokers side, just ask!
Happy Trading


Thanks for this reply, mate! I have learned this issue from your words; excellent job! Have a good weekend.

mohasasa
Jan 28 2019 at 08:22
11 zpráv(a,y)
senselead posted:

If the broker keeps the trades and the trader wins, the broker has to put from his pocket but that almost never happens because he always cancels each trader out ....



- Thank you for taking the time to enlighten us,

- Assume with me that I'm trading an exotic pair and there is no other trader is trading this pair with me, so broker fill the other side of my trades. Also assume that I'm a consistent winner.

- What happen to this broker after a long losing time trading with me? (Is he going out of business?)

mohasasa
Jan 28 2019 at 08:22
11 zpráv(a,y)
senselead posted:

If you have more questions on how it works from the brokers side, just ask!


- Could you tell us about the dirty tricks from a broker with a consistent winner trader?

+ Thanks in advance.

Lead Sense (senselead)
Jan 29 2019 at 07:44
12 zpráv(a,y)
mohasasa posted:
senselead posted:

If the broker keeps the trades and the trader wins, the broker has to put from his pocket but that almost never happens because he always cancels each trader out ....



- Thank you for taking the time to enlighten us,

- Assume with me that I'm trading an exotic pair and there is no other trader is trading this pair with me, so broker fill the other side of my trades. Also assume that I'm a consistent winner.

- What happen to this broker after a long losing time trading with me? (Is he going out of business?)


Hello Mohasasa,

No.. Broker don't go out of business.. if the broker just have you trading the Symbol, he just send your trades to the bank/liquidity provider, you pay spread, from this spread the broker pays smaller spread to the bank exactly like a Middle man, doesn't matter if you always win or lose the broker always makes money.

Because the broker puts the risk to the banks side from your trades.. and trust me the banks almost always have someone to cancel the trades out.. the banks work on similar basis, and even if the banks don't have someone to cancel trades out, guess what, they change price on the opposite side and makes money no matter what.

And you know what's the best? They don't need to explain no one why price changed opposite direction!

If the Brokers see you always losing he keeps the trades and gets all your money, if the broker see you always winning he sends all your trades to the bank and makes smaller money but always makes money.

The only time Broker takes risks is when he keeps the trades thinking your a loser and then suddenly you are winning, then he needs to pay from his pocket, that's why there are risk management systems to check everything on real time and change you quick from B-book to A-book.

That is if the broker makes everything the correct way..if he is a bad guy the dirty things the broker is able to do that I know of is that he can open and close trades in your name, your account, and you can not do nothing about it, if you deposit your money to a broker you should trust him.

Price is King, Volume is Queen, all the rest are just story tellers!
vontogr (togr)
Jan 29 2019 at 09:12
4859 zpráv(a,y)
It is the way that traders whose are profitable get their trades executed on market
Trades of the unprofitable traders are processed internally by broker and never send to market.
The broker asses who is profitable and who is not.
The problem arise at the moment when unprofitable trader makes a big profitable trade - such trade was not sent to market and thus broker has to pay it from own pocket - or refuse payment.

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