A-Book Prop Firms — What They Are & Why It Matters
Understand A-Book prop firms: how they route orders to real markets, why transparency matters, and how to identify them.
📖 ~1,800 words•definition
What Is an A-Book Prop Firm?
An A-Book prop firm routes your trades directly to liquidity providers and real markets. Your trades have real market impact, and the firm earns from spreads/commissions rather than your losses.
A-Book vs B-Book
B-Book firms internalize your trades — they're essentially betting against you. A-Book firms have aligned incentives because they profit when you trade, not when you lose.
Frequently Asked Questions
Are A-Book prop firms better?
Generally yes, because the firm's incentives are aligned with yours. They profit from your trading activity, not your losses.