Why A-Book Execution is Critical for Prop Firms

Prop firms face a fundamental choice in how they handle live trades: A-Book or B-Book. While B-Book models may seem efficient, they come with significant financial risks. In contrast, A-Book execution aligns profits with market performance, offering a sustainable path to long-term success.

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The Problem with B-Book Only Models

1. In B-Book setups, the firm acts as the counterparty to trades.
2. Successful traders’ payouts come directly from the firm’s reserves.
3. This creates financial strain, especially if trader payouts exceed the firm’s available funds.

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The Advantages of A-Book Execution

1. Trades are executed in the real market via liquidity providers.
2. Profits align with market performance, reducing the financial burden on the firm.
3. A-Book supports stability, sustainability, and trader trust.

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Why Sustainability Depends on A-Book

1. Prop firms using A-Book models mitigate the risks associated with trader payouts.
2. A-Book execution fosters long-term growth by protecting the firm’s financial reserves.

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Conclusion:

Relying solely on B-Book models is a gamble that many prop firms can’t afford. A-Book execution provides a more stable, sustainable, and trustworthy foundation for your business. Let Amun Consulting guide you in building a prop firm that thrives.

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