Industry, legal and operations
A-book
A brokerage model where client orders are passed through to external liquidity providers rather than held internally. The broker earns from spread and commission and takes no position against the client, so its revenue follows volume.
GFN’s figure
The A-book and B-book distinction does not apply to GFN. No customer trades are executed in live financial markets; evaluation and funded accounts are simulated, and GFN is not a broker.
In detail
A-book,explained
A-book execution aligns a broker's revenue with volume rather than with client losses, which is why it is the model most often held up as the transparent one.
It is a distinction about brokers. A simulated-funding firm is neither A-book nor B-book, because no customer order reaches a market at all.
Related
Terms thatcome with it
Most rules only make sense next to the ones they interact with. These are the entries this one depends on.
B-book
A brokerage model where client orders are held internally rather than passed to a market, so the broker takes the other side of them. Client losses become broker revenue, which is the structural objection to it.
Broker
A firm that executes trades on a client's behalf and holds client funds to do so. It is a different business from a prop firm, with different obligations and a different relationship to the client.
Liquidity provider
An institution that streams tradeable prices to brokers and venues - typically a bank or a specialist trading firm. Their aggregated quotes are what a retail price is ultimately built from.
Market maker
A participant that quotes both a bid and an ask continuously, profiting from the spread between them and carrying inventory risk in return. Market makers are what make an instrument tradeable in size at a predictable cost.
Simulated funding
The model where a firm assesses and pays traders on simulated accounts rather than routing their orders to a market. Trading is simulated; payouts against qualifying performance are real money.
Ready when you are
Your capital stays yours.The risk is ours.
One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes.
No subscriptions or hidden fees
Payouts every 14 days
$400,000 max total allocation