Retail forex brokers can maximize their market making earnings in a much better way than just A book/B book. Five to ten times the P/L of an A book can be captured without taking the risk of a B book. Holding inventory risk for minutes rather than hours or days dramatically reduces P/L variability .

PriceOn™ keeps dealers in control by providing advanced capability to grow their business and increase their competitiveness. Resellers have access to a broad set of features aimed at several specific use cases.

  • Separate by client, currency pair, trade size and time of day.
  • Implement hybrid strategies beyond book A and book B that maximize the P&L often missed by book A hedges while not taking the risk of book B.
  • Customize tailored feeds to grow your customer base and win lost business to bigger, more competitive players.
  • Reduce dependence on external counterparties. These often one-sided relationships can sometimes be fragile and sensitive.
  • Minimize hedging costs by placing bids and passive bids, driven from inventory to market, capturing spread and becoming a biased price market maker of a valued company.
  • Increase trade yield by optimizing the time to cover each type of flow and implement strategies to maximize and capture the gaps generated by this activity.
  • Use toxic flow to your advantage – bids and passive offers, taken from your inventory, can increase the price once deemed unprofitable.
  • Opportunistic one-sided market making (or large bias) for prop trading P&L or large client order execution.

To find out more, contact my sales team at [email protected] or directly at [email protected] – The team and I are happy to outline this in more detail and discuss your flow and trading opportunities. market.

A book/B book segmentation is not the optimal setup for a large Retail FX Brokers segment. When analyzing flow profitability, many companies mix the revenue from overnight funding with the spreads that the user crosses with that of the P/L generated by market movements. Spread capture allows the broker to further segment the P/L on trades and to differentiate “VIG” capture from the risk of a position.

Where are the greatest opportunities?

  1. Commonwealth currencies intersect due to their relatively higher spreads. Spread capture plus rolls should be close to 100% of the P/L that a typical B-book would capture with much higher consistency.
  2. Emerging market currencies where there is often >$300 per $1m of value embedded in the spread alone. These currencies generally attract much more conservative leverage. Spread capture plus reels result in much higher revenue capture per trade than traditional B Book.
  3. One Way Commodity CFD Instruments Metals (apart from Gold) and Agricultural Commodities do not lend themselves to B booking and trade at high spreads, therefore one Pound gives too much economic potential.
  4. Crypto CFDs, and in particular unleveraged crypto spots, especially outside of BTC and ETH, are ideal for capturing traditional market spread and not B Booking.

PriceOn™ from TraderTools Inc. can customize an algorithmic solution to your feed, using the same tools as a professional high-frequency store, allowing your dealers to take back control of the process. We have in-house quants and analysts ready to help customize PriceOn™ just for you.

Retail forex brokers can maximize their market making earnings in a much better way than just A book/B book. Five to ten times the P/L of an A book can be captured without taking on the risk of a B book. Holding inventory risk for minutes instead of hours or days dramatically reduces P/L variability. L.

PriceOn™ keeps dealers in control by providing advanced capability to grow their business and increase their competitiveness. Resellers have access to a broad set of features aimed at several specific use cases.

  • Separate by customer, currency pair, trade size and time of day.
  • Implement hybrid strategies beyond book A and book B that maximize the P&L often missed by book A hedges while not taking the risk of book B.
  • Customize tailored feeds to grow your customer base and win lost business to bigger, more competitive players.
  • Reduce dependence on external counterparties. These often one-sided relationships can sometimes be fragile and sensitive.
  • Minimize hedging costs by placing bids and passive bids, driven from inventory to market, capturing spread and becoming a biased price market maker of a valued company.
  • Increase trade yield by optimizing the time to cover each type of flow and implement strategies to maximize and capture the gaps generated by this activity.
  • Use toxic flow to your advantage – bids and passive offers, taken from your inventory, can increase the price once deemed unprofitable.
  • Opportunistic one-sided market making (or large bias) for prop trading P&L or large client order execution.

To find out more, contact my sales team at [email protected] or directly at [email protected] – The team and I are happy to outline this in more detail and discuss your flow and trading opportunities. market.

A book/B book segmentation is not the optimal setup for a large Retail FX Brokers segment. When analyzing flow profitability, many companies mix the revenue from overnight funding with the spreads that the user crosses with that of the P/L generated by market movements. Spread capture allows the broker to further segment the P/L on trades and to differentiate “VIG” capture from the risk of a position.

Where are the greatest opportunities?

  1. Commonwealth currencies intersect due to their relatively higher spreads. Spread capture plus rolls should be close to 100% of the P/L that a typical B-book would capture with much higher consistency.
  2. Emerging market currencies where there is often >$300 per $1m of value embedded in the spread alone. These currencies generally attract much more conservative leverage. Spread capture plus reels result in much higher revenue capture per trade than traditional B Book.
  3. One Way Commodity CFD Instruments Metals (apart from Gold) and Agricultural Commodities do not lend themselves to B booking and trade at high spreads, therefore one Pound gives too much economic potential.
  4. Crypto CFDs, and in particular unleveraged crypto spots, especially outside of BTC and ETH, are ideal for capturing traditional market spread and not B Booking.

PriceOn™ from TraderTools Inc. can customize an algorithmic solution to your feed, using the same tools as a professional high-frequency store, allowing your dealers to take back control of the process. We have in-house quants and analysts ready to help customize PriceOn™ just for you.

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