Dual Trading

Filed Under »
Dictionary Says

Definition of 'Dual Trading'

When a broker simultaneously executes customer orders and places trades in his or her own account, or one in which he or she has a beneficial interest, on the same trading day. This is also known as acting as both an agent and a dealer at the same time. Dual trading is prevalent in the futures market.

Investopedia Says

Investopedia explains 'Dual Trading'

Dual trading is a very controversial issue. Proponents say that when brokers are able to trade in their own accounts as well as those of their customers, they contribute to market performance and liquidity because personal broker trades make up a large portion of trading volume. On the other hand, opponents say that banning dual trading would not  affect market liquidity, and would eliminate unlawful trading by removing any conflicts of interest.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Broker

    1. An individual ...
  2. Front Running

    The unethical ...
  3. Agent

    1. An individual ...
  4. Dealer

    1. An individual ...
  5. Chicago Board Options Exchange - CBOE

    Founded in 1973, ...
  6. Liquidity

    1. The degree to ...
  7. Liquidity Risk

    The risk ...
  8. Volume

    The number of ...
  9. Futures

    A financial ...
  10. Futures Market

    An auction ...

Articles Of Interest

  1. Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  2. 10 Tips For Choosing An Online Broker

    This important investment decision happens before you pick your first stock. Find out how to get it right.
  3. 4 Dishonest Broker Tactics And How To Avoid Them

    Protecting yourself from unscrupulous practices means knowing how to spot them.
  4. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  5. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  6. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  7. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
  8. Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.
  9. Minis Provide Low-Cost Entry To Futures Market

    These contracts provide access to commodities without a huge capital commitment.
  10. Forget The Stop, You've Got Options

    Using options instead of stop-loss orders adds finesse and control in limiting losses.

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