NDD Glossary
ModelIntermediate

Hybrid Model

An execution model that combines A-book and B-book approaches, routing different orders or client segments through different execution paths.

Last updated: February 1, 2026
1

The broker maintains both external LP connections (A-book) and an internal book (B-book).

2

Automated rules determine which execution path each order takes.

3

Criteria may include: client profitability history, order size, instrument, market volatility.

4

Profitable or sophisticated traders are more likely to be A-booked; less active traders may be B-booked.

5

The broker optimizes the mix to balance risk management with revenue.