Contra Broker

Filed Under »
Dictionary Says

Definition of 'Contra Broker'

A term used to describe the broker participating on the opposite side of a transaction. Contra brokers will take the opposing side of a buy or sell order from the initiating broker, who is submitting said order, on their client's behalf. Contra brokers add efficiency and liquidity to the marketplace by aiding in the filling of orders by other market participants.
Investopedia Says

Investopedia explains 'Contra Broker'

Typically, a contra broker will be acting on behalf of their own client when filling a given trade. Although contra brokers add liquidity to the market, they should not be viewed as market makers, as they do not guarantee that orders will be filled. They are simply the opposing party to a given broker order.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Agent

    1. An individual ...
  2. Broker

    1. An individual ...
  3. Broker-Dealer

    A person or firm ...
  4. Inter-Dealer Broker

    1. A brokerage ...
  5. FINRA BrokerCheck

    An information ...
  6. Rainmaker

    A broker or ...
  7. Cancellation

    Notice by a ...
  8. Non-Directed Order

    A directive by a ...
  9. Large Trader

    An investor or ...
  10. Stock Exchange Daily Official List - ...

    A unique ...

Articles Of Interest

  1. Don't Let Brokerage Fees Undermine Your Returns

    Smart investors don't give away more money than necessary in commissions and fees. Find out how to save.
  2. 4 Dishonest Broker Tactics And How To Avoid Them

    Protecting yourself from unscrupulous practices means knowing how to spot them.
  3. What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.
  4. The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  5. Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center