Broker Floor. floor broker floor broker ( FB) An individual who executes orders for the purchase or sale of any commodity futures or options contract on any contract market for any other person Chicago Board of Trade glossary ———— A person who executes orders on the trading floor of an exchange on behalf of other people.
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Floor Broker
The majority of trading firms employ floor brokers of their own who make investments according to the desires of their clients or investors A floor trader is called a local whereas a floor broker is referred to as a pit broker Future Outlook The majority of traders in.
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If put in simple words a floor broker is the one who performs the deals on the behalf of the investor Floor broker is not responsible or effected by the consequences of the deal made He merely acts as a representative of the customers of the firm on the trade floor They are commonly known as pit brokers.
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Floor broker 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.