Floor Broker Definition

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.

Floor broker definition.

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. Stock exchange member who executes buy sell orders on behalf of his or her customers on the floor of the exchange. 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. There he joins other brokers and the specialist in the.

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. A floor trader is an exchange member who executes transactions from the floor of the exchange exclusively for their own account. Floor broker definition is a broker who trades on the floor of an exchange for the account and risk of others.

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. Floor trading has become increasingly rare as electronic trading. Floor broker wordreference english dictionary questions discussion and forums. 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.