Contra Broker

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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.

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