ModelBeginner
A-Book
syn. Straight-Through Processing / STP
An execution model where the broker passes client orders directly to external liquidity providers without taking the opposite side of the trade.
Last updated: February 1, 2026
1
Client places an order through the trading platform.
2
The broker's system automatically hedges the order by placing a matching order with an external liquidity provider.
3
The LP fills the broker's hedge order, and the broker passes the execution back to the client.
4
The broker earns a commission per trade or adds a small, transparent markup to the spread.
5
All risk from the trade is transferred to the LP — the broker holds no market exposure.