Introducing Broker - IB

Dictionary Says

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 Says

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.

Related Definitions

  • 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 ...
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  • Futures

    A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date ...
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  • Clearing Broker

    A member of an exchange that acts as a liaison between an investor and a clearing corporation. A clearing broker helps to ensure that the trade is settled appropriately and the ...
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