Introducing Broker - IB

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DEFINITION of 'Introducing Broker - IB'

A futures broker who has a direct relationship with a client, but delegates the work of the floor operation and trade execution to another futures merchant. The merchant firm is usually a close partner of the IB.

INVESTOPEDIA EXPLAINS 'Introducing Broker - IB'

This is done to increase efficiency and lower the work load for futures brokers. It allows the IB to focus on the client while the futures merchant focuses on trading floor operations.

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    Commodity spot prices and futures prices are different quotes for different types of contracts. The spot price is the current ... Read Full Answer >>
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    Commodity spot prices indicate future price movements because commodity futures prices are calculated using spot prices. ... Read Full Answer >>
  3. Where did market to market (MTM) accounting come from?

    Mark to market accounting has been around in concept since the stock market began; however, it was not officially part of ... Read Full Answer >>
  4. Why is market to market (MTM) accounting considered controversial?

    Mark to market accounting has been an integral component of generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
  5. What is the difference between economic value and market value?

    The difference between market value and economic value is that the former represents the minimum amount the customer is willing ... Read Full Answer >>
  6. How do I set a strike price for a future?

    Strike prices can be set for put and call options, but investors engaged in futures contracts are obligated to trade the ... Read Full Answer >>
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