Community Forex Questions
What is A Book vs B Book in Forex Trading?
Forex is different from from equities or futures trading because your broker can choose to all your 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.
In Forex, your broker can keep your trades ' in house' This means that your trades are not sent to the real market.
Instead, your broker bets against you, taking the other side of the trade. For example, if you were to buy 1 lot of EURUSD at 1.35000, then your broker would be selling 1 lot of EURUSD 1.35000. If you win, your broker loses, vice versa.
In Forex, your broker can keep your trades ' in house' This means that your trades are not sent to the real market.
Instead, your broker bets against you, taking the other side of the trade. For example, if you were to buy 1 lot of EURUSD at 1.35000, then your broker would be selling 1 lot of EURUSD 1.35000. If you win, your broker loses, vice versa.
Jul 15, 2021 15:29