A-Book & B-Book Management Software for FX and CFD Brokers
Tapaas provides real-time A-book and B-book management software that gives FX and CFD brokers the live data infrastructure needed to operate, optimise, and automate their book execution strategy. Warehouse Rules, dynamic Book Switching, and Autohedging work from a single, continuously updated intelligence environment.
Most FX and CFD brokers operate a hybrid execution model — routing some client flow to liquidity providers (A-book) while internalising the rest (B-book). The profitability of this model depends entirely on the quality of routing decisions. Tapaas replaces static, manually managed book rules with dynamic, data-driven book management based on live exposure, profitability, and client behaviour data.
Understanding A-Book, B-Book, and Hybrid Execution Models
FX and CFD brokers manage client trades using one of three primary execution models. The choice — and the ongoing management of that choice — directly determines a broker's risk exposure, capital requirements, and profitability.
Execution Model
A-Book (STP)
How It Works
Client trades are passed directly to liquidity providers. The broker earns spread revenue and takes no market risk. The LP takes the opposite side of the client trade.
Risk Profile
Low — broker has no directional exposure
Profitability Model
Spread-based. Profit is independent of client outcome. Scales with volume.
Execution Model
B-Book (Warehouse)
How It Works
Client trades are internalised. The broker takes the opposite side and profits when the client loses. Positions are accumulated in the Warehouse book.
Risk Profile
High — broker carries full directional exposure on internalised positions
Profitability Model
Outcome-dependent. Profitable when client flow loses on average. Requires active exposure management.
Execution Model
Hybrid (A/B-Book)
How It Works
A combination of A-book and B-book, with routing decisions made dynamically based on client profiling, flow quality, and real-time risk thresholds.
Risk Profile
Managed — risk is controlled through selective internalisation
Profitability Model
Optimised. Higher-margin flow is internalised; toxic or high-risk flow is hedged. Requires real-time data to execute effectively.
The hybrid model offers the best profitability potential — but only when routing decisions are based on accurate, current data. Tapaas provides the real-time infrastructure that makes dynamic hybrid book management operationally viable at scale.
Tapaas A-Book & B-Book Management: How It Works
Tapaas manages A-book and B-book allocation through a combination of Warehouse Rules, real-time position monitoring, and dynamic Book Switching. The platform applies the same logic as a broker's bridge — but extends it across all open positions continuously, not just at the point of trade entry.
1
Feature
Warehouse Rules
How It Works
Tapaas applies configurable Warehouse Rules to all trades and open positions to determine A-book (STP) or B-book (Warehouse) allocation. Rules are processed in order, top to bottom, with the first matching rule applied. Rules can be updated in real time without platform changes. Unlike a bridge, Tapaas applies rules not only to new trades but also to all existing open positions — enabling retroactive reallocation based on current rule sets.
Business Outcome
Book allocation reflects current strategy at all times — not just at trade entry. Changes to rules take effect across the entire open book immediately.
2
Feature
Book Switching
How It Works
Enables dynamic switching of individual client positions or groups between A-book and B-book routing in real time. Book switches can be triggered manually by the dealing desk or automatically based on configurable risk thresholds.
Business Outcome
Dealing teams can respond to changing conditions — routing a client from B-book to A-book the moment their profile changes — without waiting for existing positions to close.
3
Feature
Autohedging
How It Works
Configurable autohedging rules execute hedging actions automatically when defined exposure thresholds are reached. Reduces manual dealing desk intervention during high-exposure events.
Business Outcome
Exposure is managed systematically even during periods where manual oversight is not constant — reducing the risk of delayed hedging decisions.
4
Feature
PnL Accounting for Book Switching
How It Works
When positions are switched between books, Tapaas performs accurate PnL allocation: unrealised PnL is moved from the source book, applied to the source book's realised PnL, and the inverse applied to the target book's realised PnL. Day PnL reflects the correct amount in each book before and after the switch.
Business Outcome
Book-level PnL remains accurate and auditable after switches — critical for performance reporting and regulatory compliance.
4
Feature
A-Book Balance Assurance
How It Works
Monitors A-book positions to ensure the book remains appropriately hedged. Alerts dealing teams when the A-book becomes imbalanced — for example, when hedge positions do not fully cover STP client exposure.
Business Outcome
Eliminates the risk of silent A-book imbalance where positions assumed to be hedged are not fully covered.
4
Feature
Live Profitability by Book
How It Works
Tracks real-time PnL by book type — showing what the A-book and B-book are each generating at any moment in the session. Includes breakdown by symbol, client group, and instrument.
Business Outcome
Routing decisions are made on current profitability data rather than end-of-period analysis.
Tapaas A-Book & B-Book Management Capabilities
Real-Time Warehouse Rules
Configurable rules applied to all trades and open positions continuously. First-matching rule logic, drag-and-drop ordering, and real-time updates without platform restarts. Tapaas applies rules across the entire open book — not only at trade entry as a bridge does.
Dynamic Book Switching
Switch individual accounts, client groups, or positions between A-book and B-book in real time. Manual dealer-initiated switching and automated threshold-triggered switching both supported.
Autohedging Execution
Automated hedging rules execute when configurable exposure thresholds are reached. Reduces manual intervention requirement during high-exposure sessions or volatile market conditions.
Live A/B-Book PnL Tracking
Real-time profitability tracking by book type — A-book and B-book PnL displayed separately and updated continuously throughout the session.
PnL Accounting for Switches
Accurate PnL reallocation when positions are switched between books. Unrealised PnL from source book is moved and applied correctly to realised PnL in both source and target books. Day PnL remains accurate and auditable post-switch.
A-Book Balance Monitoring
Continuous monitoring of A-book hedge coverage. Alerts when the A-book becomes imbalanced or hedge positions do not fully cover STP client exposure.
C-Book Support
Multi-book architecture supporting A-book, B-book, and C-book configurations. All net volumes aggregated across books into a consolidated view for cross-book analysis.
FAQs
Frequently Asked Questions — A-Book & B-Book Management
A-book (STP) refers to client trades passed directly to liquidity providers — the broker earns spread and carries no market risk. B-book (Warehouse) refers to trades internalised by the broker, who takes the opposite side and profits when the client loses. Most FX and CFD brokers operate a hybrid model, dynamically routing flow between the two based on client profiling and risk thresholds.
A Warehouse Rule is a configurable logic rule that determines whether a client's position should be allocated to the A-book (STP) or B-book (Warehouse). Rules are processed in order and the first matching rule is applied. Tapaas applies Warehouse Rules not only to new trades as they occur but also to all existing open positions — enabling retroactive book reallocation when rule sets are updated.
Tapaas supports real-time Book Switching — moving individual client positions or groups between A-book and B-book routing during the live session. Switches can be triggered manually by dealing desk teams or automatically when configurable risk thresholds are breached. When a switch occurs, Tapaas performs accurate PnL accounting across both books.
Autohedging is the automatic execution of hedge positions when defined exposure thresholds are reached. In Tapaas, autohedging rules are configurable and execute without manual dealing desk intervention — reducing reaction time during high-exposure events or volatile market conditions.
When positions are switched between books in Tapaas, the platform reallocates PnL accurately: unrealised PnL from the source book is moved to the target book, the equivalent amount is applied to the source book's realised PnL, and the inverse is applied to the target book's realised PnL. This ensures that day PnL reflects the correct amount in each book before and after the switch.
Yes. Tapaas supports multi-book configurations including A-book, B-book, and C-book. All net volumes across books are aggregated into a consolidated view, enabling cross-book exposure analysis and performance comparison.
Tapaas provides dealing teams with real-time exposure metrics, live profitability data by client and instrument, and continuously updated trader behaviour profiles — giving them the current data needed to make informed routing decisions. Warehouse Rules and Book Switching can be automated based on this data, or applied manually based on dealer judgment.