Each Way


DEFINITION of 'Each Way'

A slang phrase used when a broker earns commissions from both parties in a security sale. The purchaser and the seller of the security will pay a fee to the broker for facilitating the transaction.


Going each way on a trade is ideal for a broker. When investors purchase or sell a stock, bond or derivative, they will usually conduct the transaction through a broker. The broker will take the client's order and try to fill it. For this service, the broker will usually charge a small fee to cover the transaction costs. If the broker is able to match the clients together, they are able to earn twice the commission on a single transaction.

  1. Commission

    A service charge assessed by a broker or investment advisor in ...
  2. Either-Way Market

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  3. Transaction Costs

    Expenses incurred when buying or selling securities. Transaction ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  6. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise ...
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