Introducing Broker - IB


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.

BREAKING DOWN '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.

  1. Futures

    A financial contract obligating the buyer to purchase an asset ...
  2. Broker

    1. An individual or firm that charges a fee or commission for ...
  3. Clearing Broker

    A member of an exchange that acts as a liaison between an investor ...
  4. Swap

    A derivative contract through which two parties exchange financial ...
  5. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  6. Convergence

    The movement of the price of a futures contract towards the spot ...
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