Now let’s take a look at C-Book and how forex brokers manage their risk using it.
Aside from forex brokers who “A-Book” or “B-Book“, you might also come across the term “C-Book”.
“C-Book” is a term that’s used to describe “risk management strategies” that forex brokers and CFD providers use that is supposedly different from A-Book or B-Book.
“C-Book” is just marketing jargon. It’s not really a different approach that brokers use to manage risk, it’s more of a vague term to describe variations or tweaks of A-Book and B-Book execution.
As you’ll see, “C-Book execution” isn’t really used by the broker to manage risk, but to make more money for itself.
It also considered these execution methods controversial, and it’s questionable whether forex brokers should do them.
We’ll leave it up to you to be the judge.
We will cover three forms of “C-Booking”:
- Partial hedging
- “Overhedging”
- “Reverse hedging”
