Block Positioner
Definition of 'Block Positioner'A securities dealer who will take a long or short position in order to accommodate a seller or buyer of a large block of securities. The dealer takes on the risk of the securities in order to help clear the trade for the seller. Block positioners aim to unload the position quickly, and typically hedge their risk with options or by selling the securities short. |
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Investopedia explains 'Block Positioner'Block positioners can take on considerable risk in exchange for the profits they seek. Any firm involved in block positioning must register with the Securities and Exchange Commission and the New York Stock Exchange, if it is a member firm. Under Rule 15c3-1 for market makers, block positioners must have minimum capital of $1 million and meet other conditions while unloading the securities block. |
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