Omnibus Account

AAA

DEFINITION of 'Omnibus Account'

An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined in this type of account, allowing for easier management by the futures merchant.

INVESTOPEDIA EXPLAINS 'Omnibus Account'

This protects the identities of the individual account holders, because the futures merchant transacts for them.

RELATED TERMS
  1. Account

    1. An arrangement by which an organization accepts a customer's ...
  2. Commission House

    A brokerage or merchant firm which buys and sells futures contracts ...
  3. Futures

    A financial contract obligating the buyer to purchase an asset ...
  4. Account Activity

    A banking term that refers to any activity that creates a debit ...
  5. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
  6. ISDA Master Agreement

    A standard agreement used in over-the-counter derivatives transactions.
Related Articles
  1. Take A Tour Of The Futures Trading Pit
    Active Trading

    Take A Tour Of The Futures Trading Pit

  2. Trading Gold And Silver Futures Contracts
    Options & Futures

    Trading Gold And Silver Futures Contracts

  3. Fueling Futures In The Energy Market
    Options & Futures

    Fueling Futures In The Energy Market

  4. An Introduction To Managed Futures
    Options & Futures

    An Introduction To Managed Futures

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center