If you're starting a forex or CFD brokerage, risk management isn't optional — it's the foundation of your business. Understanding how to manage exposure, choose execution models, and monitor your book is the difference between a sustainable business and an expensive lesson.
A-Book vs B-Book vs Hybrid
The most fundamental decision is your execution model. A-Book (STP) means you pass all client orders directly to your liquidity provider. You make money on spread markup and commissions, with zero market risk. B-Book means you internalize client orders — you're the counterparty. Higher profit potential, but you take on market risk. Most brokers use a hybrid model, routing some clients to market and internalizing others based on risk profile.
Real-time exposure monitoring
You need to know your net exposure at all times — by symbol, by client, by group. If you're running any B-Book, a sudden market move can wipe out profits instantly. Real-time monitoring lets you see your book and act before problems become crises.
Key metrics to watch: net exposure per symbol, P&L per client and group, margin utilization, and concentration risk (how much exposure comes from a single client or group).
Setting risk limits
Define clear limits before you start: maximum net exposure per symbol, maximum exposure per client, margin call and stop-out levels, and position size limits. These should be configurable and enforced automatically — not dependent on someone watching a screen.
Dealing desk operations
Even with automated risk rules, you need dealing desk capability for manual intervention. This includes the ability to requote, reject orders, adjust spreads in real-time, and close positions when necessary. The dealing desk should have full visibility into the book and the tools to act quickly.
Compliance and reporting
Regulators expect brokers to demonstrate adequate risk management. This means documented risk policies, regular exposure reports, audit trails for dealing desk decisions, and evidence that risk limits are enforced. Build this into your operations from day one — retrofitting compliance is always harder.
Getting started
RiskVu provides all of these capabilities in a single desktop application: real-time monitoring, exposure analytics, dealing desk controls, risk alerts, and compliance reporting. It works as a standalone product with any broker, giving you enterprise-grade risk management from day one.