No Dealing Desk/STP Operation
STP & NON STP
UAGTRADE is a true No Dealing Desk execution broker and offers Straight Through Processing (STP) which automatically sends orders directly from the trader to the liquidity provider without passing orders through a dealing desk. It ensures that orders are processed instantly, devoid of delays and requotes. It also eliminates the conflict of interests between the broker and the client.
Difference Between A-Book & B-Book
STP & NON STP
The A-book/Straight Through Processing
When a customer trade is passed through to a liquidity provider or multilateral trading facility, this is known as A-booking (also known as Straight through Processing “STP”).
When this happens, brokerages turn a profit by marking up the spread or charging their customers commission. There is no conflict of interest as the brokerage will make the same profit regardless of whether the trader is profitable or not.
The B-book/Dealing Desk
If the brokerage instead decides to keep the customer’s trade on their own book, this is known as B-booking. The brokerage takes the other side of a customer’s trade which means when B-booking, a brokerage’s total profit can often be equal to the total losses of the trades placed on their B-book.
Brokerages are able to manage risk associated with keeping a B-book by using certain risk management tactics, such as internal hedging and spread variation.