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Finance: What is a Floor Broker v. Floor Trader 13 Views

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Description:

What is a Floor Broker vs. Floor Trader? Both floor brokers and floor traders execute trades on the exchange floor, the difference is who they execute these trades for. Brokers execute trades for their clients’ accounts while traders execute trades for their own personal accounts.

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Transcript

00:00

Finance allah shmoop What is ah floor broker versus a

00:06

floor trader All right Well here's a floor fixer and

00:11

here's a floor broker but okay Shocking a floor broker

00:16

Brokers stocks on the floor of a stock exchange Right

00:22

Well here's the new york stock exchange here's its floor

00:25

These guys down here they're floor brokers That is they're

00:28

trading stocks and other securities on behalf of their clients

00:32

Basically this is the scene from trading places with eddie

00:36

murphy Great old film Old rich white guys in a

00:39

building up here Call down to their guys on the

00:41

floor who execute their bidding All right well it's a

00:44

bunch of brokers all trading their clients stocks right here

00:47

and here And here and here and here all over

00:49

the world within among each other So that money is

00:52

well pushed around thoroughly like that Cato's in grandma's hash

00:55

browns recipe Note that a floor broker is different from

00:58

a floor trader Who although he or she works on

01:02

the floor of an exchange also makes trades as a

01:05

principal for his or her own account So yeah that's

01:08

floor broker No jackhammer required Thank you very much Go

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