Floor Broker Definition

They can act as a back up if the market is overwhelmed by orders.

Floor broker definition.

A floor broker receives an order from a client through his or her brokerage firm and trades the security with other brokers on the exchange floor. Based on interactions with specialists in the specific securities being traded and bidding with other brokers or traders on the floor of the exchange the floor broker attempts to get the most. See also floor trader. Floor brokers at a securities or commodities exchange handle client orders to buy or sell through a process known as a double action auction in which brokers bid against each other to secure the best price.

Floor broker wordreference english dictionary questions discussion and forums. A floor broker also known as a pit broker is an independent member of an exchange who is authorized to execute trades on the exchange floor. A floor broker also known as a pit broker is an independent broker who executes orders on the floor of a stock or commodity exchange on behalf of clients that can include banks or brokerages. Stock exchange member who executes buy sell orders on behalf of his or her customers on the floor of the exchange.

Floor broker definition is a broker who trades on the floor of an exchange for the account and risk of others. The floor broker receives an order via teletype machine from his firm s trading department and then proceeds to the appropriate trading post on the exchange floor. A floor broker is an independent member of an exchange who can act as a broker for other members who become overloaded with orders as an agent on the floor of the exchange. Floor broker a member of a stock exchange or futures exchange who trades securities or derivatives on the trading floor on behalf of other investors.