Financial spread betting offers brokers the opportunity to provide leveraged trading to clients, but it also introduces significant risk exposure. Effective risk management is critical to protect both the broker and its clients. Fintechee provides a robust platform with integrated tools to manage exposure, margin, and liquidity, helping brokers operate safely and scale efficiently.

Broker Exposure in Spread Betting Models

Spread betting differs from traditional CFD trading primarily in its point-based profit and loss model. Brokers can face substantial exposure if market movements are large or client positions are concentrated. Key considerations include:

• Maximum potential losses based on stake-per-point and open positions

• Aggregated exposure across multiple instruments

• Concentration risk in specific markets or instruments

A platform with real-time monitoring is essential to detect and manage these exposures before they affect the broker’s balance sheet.

A-Book vs B-Book Considerations

Brokers must decide how client trades are processed:

• A-Book (market hedged): Client trades are passed to the market, reducing broker exposure but incurring liquidity costs

• B-Book (internalized): Client trades are retained internally, increasing exposure but potentially enhancing profitability

Fintechee supports both models, allowing brokers to:

• Automate hedging strategies for A-Book trades

• Monitor internalized B-Book exposure in real time

• Switch or combine models flexibly per client segment

Real-Time Margin and Liquidation Logic

Proper margin and liquidation handling is crucial to controlling risk:

• Dynamic margin calculation adjusts for market volatility and stake-per-point

• Real-time monitoring triggers alerts for potential margin breaches

• Automated liquidation ensures positions are closed to prevent negative balances

• Customizable rules allow brokers to adapt to different instruments or client types

These mechanisms reduce the likelihood of unexpected losses while maintaining a fair trading environment.

Risk Tools Supported by Fintechee

Fintechee provides brokers with a suite of risk management tools:

• Exposure dashboards to track aggregated risk across all client positions

• Stop-loss and take-profit enforcement for point-based trades

• Margin call notifications and auto-liquidation settings

• Multi-jurisdictional compliance monitoring for regulated markets

These tools enable brokers to make informed decisions and maintain operational integrity.

Scalability for Growing Client Bases

As client numbers and trading volumes increase, risk management becomes more complex. Fintechee’s architecture ensures:

• Scalable backend capable of handling high-frequency trades and multiple asset classes

• Modular risk engine to extend or customize rules as needed

• Consistent performance under peak trading conditions

This allows brokers to expand their spread betting offerings confidently without compromising safety or execution quality.