Industry, legal and operations
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.
GFN’s figure
GFN does not B-book customer orders, because there are no customer orders in a live market to book. All evaluation and funded accounts are simulated, and GFN is not a broker or financial institution.
In detail
B-book,explained
B-booking is legal and widespread, and the objection to it is structural rather than moral: it creates an interest in client losses that A-book execution does not.
It is frequently confused with simulated funding, which is a different arrangement again: there is no client order to take the other side of, because nothing is routed anywhere.
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.
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.
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.
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.
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.
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