What are independent brokers?

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Floor runners in regional value markets execute orders and negotiate purchases and sales for customers and companies. Independent traders still operate on the floors of major stock exchanges like NYSE and LSE. Communication is done through manual signals and independent contractors wear jackets of the same color. These traders can work for customers or the company they represent.

A look at the floor of an important regional value market may seem a simple sight like chaos. In reality, what is happening is a sufficiently organized negotiation system led by teams of independent runners and bag runners. A runner on the floor of an important bag of valuables, or runner of the floor, is in the place for the execution of orders, the fulfillment of purchase orders and large and small reverse orders. These professionals in the menu are compensated for by the amount of money they earn for their customers and the company for what they work.

While many stock exchanges from all over the world have passed into an electronic trade environment, there are still large stock markets, including the New York Stock Exchange in the United States and the London Stock Exchange in the United Kingdom, which nonetheless employ independent traders en el piso de Los intercambios. These floor runners are not employed by the bag in the market, but only by an independent company that has space requirements in the trading floor.

In general, there is a type of establishment that belongs to the stock market houses from which the independent contractors of the same company have a base of operations. Here is where the runners communicate and execute purchase and sale orders in the name of their customers. This is known as order execution.

Estas órdenes comerciales se comunican de un corredor a otro a menudo a través del piso de negociación con señales manuals. Independent contractors of the same company will generally use a chaqueta of the same color so that the contractors can easily recognize a dealer of their own company. Es el trabajo de los corredores independientes ejecutar órdenes al mejor precio posible para sus clientes. This is done in a bidding process, where a vendor establishes a precio de venta and a comprador offers a precio de offera, and the independent seller must execute the order.

The signatures of runners of the bag can emplear hundreds or even thousands of individual runners. Typically, they are the large inversion banks with independent branches or divisions of corretajes who have the greatest presence on the floor of an important stock of values. Sin embargo, solo un grupo de corredores de una empresa respectiva selecciona para estar en el piso de la bolsa de valores. These contractors can carry out operations in the name of the customers or in the name of the company for which they work.

The key difference between these tareas is that when the traders execute orders to buy and sell in the name of the customers, they act as independent contractors. When deals are made with firm money that are negotiating in the name of the company, these professionals are executing operations like an independent distributor. A trade company could buy and sell values ​​with its own money as a medium to generate a flow of additional inputs.

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