The Company operates on a 100% A-book model, hedging on external counterparties for all client positions.
The company is not interested in the client's losses, as it earns only from the commission paid by the client for making transactions.
Check the illustration for detailed information
A-book
Client
Broker
Interbank
Counterparties of 1st and subsequent levels
A-book
Client
Broker
Conflict of interest
Deterioration in execution of trading orders
Introduction of restrictions on trade
Cancellation of profitable deals
Denial of payment profits
Trader's psychological state
No conflict of
interest
In the case of B-book and mixed model work, the company acts as a counterparty to the client's transactions, the client's earnings become the company's losses, and vice versa.
The scheme of work under the A-book model completely excludes conflict of interests between the Company and clients, as the Company does not act as a counterparty to clients' transactions and is not interested in their losses.
No risks of
bankruptcy
In the case of B-book and mixed model, the company bears additional risks, as it acts as a counterparty to the client's transactions, the client's earnings become the company's losses, and vice versa.
This reason has led to the bankruptcy of quite a few companies, due to too high earnings of clients in a short period of time.
FELDSTEIN FINANCIAL GROUP does not bear these bankruptcy risks as it does not act as a counterparty to clients' transactions.