How FX Brokers Manage Their Price Risk

Using real world examples, the ABCs of Price Risk Hedging, is a behind the scenes look at a broker’s day to day operations, and how they deal with risk management. For those new to the Forex market, it aims to completely untangle terms like STP or A-Book models which are too often used synonymously, when in fact there are subtle differences between the two. Moreover, this guide goes a long way to clarify different risk management techniques that only the pros can tell apart and the less experienced tend to use interchangeably. 

It also takes the reader through solutions to problems faced by FX brokers, that are easy to understand, yet not oversimplified; with a series of detailed graphs, illustrations and tables and provides answers for anyone that’s ever wondered what happens on the broker’s side when an order is placed.

By presenting the brokers perspective the ABCs of Price Risk Hedging offers, particularly in the case of non professional traders, a unique opportunity to address any knowledge gaps they might have and improve their financial literacy. However, what this ebook does not do, is teach traders how to manage their own risk exposure or even how to make money. Instead, it gives them a deeper understanding of what a broker really does. 

This means traders can make more informed choices when selecting a broker or feel more confident when dealing with their current one. For those with a little more experience in the field, this ebook can serve as a way to connect the dots between what they already know; the dots between A to C, for instance, reminding themselves of the difference between an A-Book, B-Book, C-Book and the pros and cons of each model. Furthermore those unfamiliar with the OTC (over-the-counter) space will be able to gain an appreciation of the challenges forex brokers deal with in relation to these models, how they make money, and get a better idea of risk acceptance and transference.

This ebook is not just useful for newcomers to the market, but also broker’s very own employees: in-house IT engineers, help desk and dealing desk personnel. Education of course takes time, but with materials like this free guide, it makes the onboarding process that much quicker. 

So whether you are a rookie trader still learning the ins and outs of the brokerage business, a startup in the early stages of setting up your own brokerage or even a seasoned pro, the ABCs of Price Risk Hedging is a great opportunity to differentiate the terms and see how FX brokers manage their risk, up close and risk free. Follow the link to download it now!