Good day BP community! So yesterday, I opened an account with a broker. Went and tested their overall services, and also tried their live chat feature. I have talked to an agent and I curiously ask whether they are an A Book or B Book broker. My question was simplistic because I am fairly new to the forex business. And so, they replied the quote below, which I find quite confusing. Here is what they have replied:
“We don’t differentiate client flow. In our view every trade taken in isolation has mathematically the same chance of being a successful trade. We therefore internalize (match off against other client trades in the other direction) as much as possible within symmetrical (long /short) risk limits. Where we breach those risk limits we would then hedge the exposure, by trading in the underlying market.This hedging is asynchronous, meaning we don’t initiate hedging trades based on any one order / client; instead do so based on the net exposure of the group.”
So, what did this quote really meant? Are they an A Book or Book broker?
Given their answer, what are the implications, pros and cons, of trading with this broker?
Thank you for taking the time to read my post, I really meant it.
- Brylle M.