Broker Risk Blog

Every broker with a hybrid model faces the same decision hundreds of times a day: Does this flow go to the book, or does it go to the street? A-book or B-book. Internalize or externalize. Keep the risk or pass it on. For most of the industry’s history, this decision has been made by one […]

Here is a question that every dealing desk should ask—and almost none do: Across the last 1,000 trades on your platform, how many times did slippage favor the client versus how many times did it favor the house? The Balanced Coin: If the answer is roughly 500/500, your execution is fair. Slippage is a product […]

There is a metric that institutional market makers have used for decades to separate signal from noise, skill from luck, and predator from prey. It is the single most important measurement in execution analytics, and most retail brokers have never heard of it. It is called a markout. If you run a brokerage and you […]

It is 1:29 PM London time on the first Friday of the month. Non-Farm Payrolls (NFP) drops in sixty seconds. Your dealing desk knows what is coming. Spreads will widen. Volatility will spike. The price will move 30, 50, maybe 100 pips in the first seconds after the release. This is not a surprise. It […]

Every night at rollover, your platform processes thousands of swap calculations. Interest is charged or credited. Positions roll forward. The back office reconciles. And somewhere in that routine process, a small number of accounts are extracting risk-free profit from your book.

Every broker has a dashboard. Every dashboard has a PnL column. And every night, somewhere in the world, a dealing desk manager stares at that column and knows—feels—that something is wrong, but cannot point to the row that proves it. The problem is not the dashboard; it is what the dashboard measures. PnL is an […]

There is a category of client that most brokers celebrate: High volume. Active daily. Consistent lot counts. The Introducing Broker (IB) who brought them in is earning well, and the client’s account shows steady activity month after month. The PnL is flat. Not losing, not winning. Just flat. In most brokerages, nobody investigates a client […]

Twelve accounts. Twelve different names. Twelve different email addresses. Twelve different countries of residence. Twelve separate KYC files, each one clean. On your admin panel, they are strangers. In reality, they are one operation. This is the modern trading syndicate, and it is the most expensive blind spot in brokerage risk management. Not because the […]

There is an account on your platform right now that your dealing desk considers a VIP. High volume. Consistent profitability. Low complaint rate. They have been trading for months, maybe years. They might even have a dedicated account manager.

The Burden of the Invisible We did not set out to build a risk tool. We set out to build a solution for that specific, isolated silence we’ve all felt, the one that falls over the desk when the PNL starts to drain, and the standard explanations just don’t fit. I have spent over half […]