Search Investopedia

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.

Related Definitions

  •

    Agent

    1. An individual or firm that places securities transactions for clients. 2. A person licensed by a state to sell insurance. 3. A securities salesperson who represents a broker-dealer or ...
    Read More »

  • Broker

    1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. 2. The role of a firm when it acts as an agent for a customer and ...
    Read More »

  • Broker-Dealer

    A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction.
    Read More »

    • Inter-Dealer Broker

      1. A brokerage firm operating in the bond or OTC derivatives market that acts as an intermediary between major dealers to facilitate inter-dealer trades. 2. A member of the London Stock ...
      Read More »

    • FINRA BrokerCheck

      An information vehicle containing statistics on both past and present securities brokers and firms registered with FINRA. With FINRA BrokerCheck, an investor can find a firm's history, ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions