What is the floor broker?
floor brokers are investment experts who are authorized to buy and sell investments on the exchanges. The floor broker will be a member of the stock exchange where he carries an investment transaction on behalf of the client. After placing an order, a broker will pass information for a brokerage company that continues to use the order to the client account and report to the store to display the published online and accessible using TICKER tape.
The floor broker is not the same as the floor trader. Traders are individuals who are members of the stock exchange and are there to perform commands according to their own name. The trader is therefore able to decide on business activities that may or may not be in line with its usual strategies. On the other hand, the floor broker always represents the interests of the client of the brokerage company, which employs brokers, and carries out a shopping and sales activity in Acsídek with instructions approved by the client.
The importance of the floor broker for the investment process cannot be underestimated. The floor broker often immediately learns about information, which may or may not be in most investors. Given that the broker obtains this information when it becomes a public knowledge, this information can be used without any delay. Assuming the level of permission provided by the client is sufficient, it means that the floor broker is in an excellent position to prevent the investor from sudden loss due to unexpected changes in the market. At the same time, the broker can get the investor a lot before the unit price of securities begins to increase drastically.
In all negotiations, the floor broker must observe the rules and regulations established by the external. If you do not do so, this may lead to a temporary expulsion from the market floor, a situation that significantly prevents the agent to provide the client with excellent services. In situations,When a repeated offense occurs, the floor broker can expose fines or even a permanent switches from the replaceable floor. For this reason, floor brokers are often in large lengths to make sure they are in full compliance with the stock exchange and any laws established by government regulators that oversee investment activities in the nation.