A-Book Broker
A broker that sends traders (clients) orders directly to liquidity providers (STP Model) or the interbank market, reducing conflict of interest.
A-Book vs B-Book / or Hybrid
Comparison of order execution models:
- A-Book → orders passed to external liquidity providers.
- B-Book → orders executed internally within the brokerʼs dealing desk.
- Hybrid model → Most popular: usage of both approaches according to the brokersʼ risk appetite.
Account Aggregation
A process where multiple trader accounts are grouped and segmented together (by IP, CID number, email, or agent) to detect suspicious or fraudulent activity.
Agent Commission
Compensation paid to introducing brokers (IBs) or affiliates based on client (trader) trading volumes or deposits.
B-Book Broker
A broker that internalizes client (trader) orders instead of sending them to external markets. Profits and losses remain within the brokerage. Requires strong broker risk management software.
Balance Margin (MT4/MT5/cTrader)
The available margin in a trading account that determines how many positions a trader can open. Managed through MT4 (MetaTrader 4) and cTrader risk management systems.
Broker API
A programming interface allowing brokerage companies to connect trading platforms (MT4, MT5, cTrader) with CRM systems, risk management tools, and reporting software and etc.
Broker CRM
A Customer Relationship Management solution tailored for brokerage companies. Manages clients, affiliates, IBs, and integrates with trading platforms.
Broker Monitoring Software
A platform that provides real-time monitoring of the dealing desk, PnL, exposures, and trader activities, ensuring brokers can detect anomalies instantly.
Broker Risk Management Software
A digital solution that monitors client (traders) trading activities, detects scalping, highlights and prevents toxic flow, and provides real-time exposure analytics.
Brokerage License
The official authorization required to operate as a brokerage firm. Can vary by jurisdiction (e.g., FCA, CySEC, offshore).
Brokerage Software
End-to-end brokerage solutions including CRM, liquidity aggregation, reporting, APIs, and risk management tools used by brokerage company executives and operational management.
CFD (Contract for Difference)
A financial derivative allowing speculation on asset prices without owning the underlying instrument. Common on MetaTrader platforms.
Copy Trading
A feature or platform that allows traders (clients) to copy the trades of professional traders. Also called social trading.
cTrader
A trading platform offering brokerage companies ECN/STP execution, advanced charts, algorithmic trading, and copy trading features.
Dealing Desk
The brokerageʼs internal system where orders are managed, risks are monitored, and execution decisions are made.
Dividends Manager
A system (such as Brokerpilot) for managing dividend adjustments on CFDs on stocks or indices.
ECN Broker
A broker company that connects clients directly to an Electronic Communication Network (ECN), providing direct market access with tight spreads.
Equity Tracker (MT4/MT5/cTrader)
A tool used to monitor account equity in real time. Supports risk management and stop-out monitoring.
FIX API
A standardized Financial Information Exchange protocol used by professional traders and brokers to connect directly with liquidity providers.
Floating PnL
Unrealized profit and loss on open positions, changing with market fluctuations.
Forex CRM
A CRM system designed for forex brokers, integrating trading platforms, KYC verification, IB management, and client portals.Глоссарий3
Forex Promotions
Marketing campaigns (e.g., welcome bonus, CPA bonus, deposit bonus) designed to attract and retain traders (clients).
Hedge Account
An account used by brokerages to offset exposures created by client positions. Essential for A/B-Book risk management.
Hybrid Broker
A broker that combines both A-Book and B-Book execution approaches.
Introducing Broker (IB)
A partner or agent who refers clients (traders) to a broker in exchange for commission.
Leverage Ladder
A risk management tool that ties leverage levels to account equity, ensuring traders use appropriate leverage.
Liquidity Provider
Banks, hedge funds, or technology firms that provide market liquidity and pricing to brokers.
MetaTrader 4 (MT4)
A leading retail trading platform supporting forex, CFDs, and algorithmic trading via Expert Advisors.
MetaTrader 5 (MT5)
The successor to MT4 with faster execution, more instruments (including stocks and futures), and advanced reporting.
Negative Balance Protection
A risk management feature ensuring traders (clients) cannot lose more than their deposited funds.Глоссарий4
Order Execution
The process of filling client trades at market prices. Brokers monitor execution quality to avoid slippage and delays.
PnL (Profit and Loss)
A measure of trading performance, including daily PnL, floating PnL, hedge PnL, and realized PnL.
Position (Finance)
A financial commitment held by a trader (client), either long (buy) or short (sell).
Prop Trading (Proprietary Trading)
When firms or prop trading companies trade their own capital to generate profits, instead of executing client trades.
Scalper / Scalping
A trading style characterized by very short-term trades and high frequency. Brokers often monitor scalpers through risk management systems.
Stop-Out Level
The point at which a broker automatically closes positions when a traderʼs margin falls below a threshold.
STP Broker (Straight Through Processing)
A broker that automatically passes orders to liquidity providers without dealing desk intervention.
Symbol Rollover
An adjustment made to CFDs on futures when contracts expire. Ensures open positions are corrected for price differences at rollover.
Toxic Flow
Unprofitable or harmful order flow for brokers, often generated by latency arbitrage, scalping, or bonus abuse.Глоссарий5
Turnkey Brokerage Solution
A full package including trading platform, CRM, liquidity, risk management, and back-office tools for launching a new brokerage.
White Label MT4 / MT5
A cost-effective brokerage solution where a broker uses MetaTrader under a licensed provider instead of buying a full server.
