Principal Orders

Filed Under » Brokers

	Definition of 'Principal Orders' A type of order carried out by a broker-dealer which involves the broker-dealer buying or selling for its own account and at its own risk, as opposed to carrying out trades for the brokerage's clients.
	Investopedia explains 'Principal Orders' When a broker-dealer is acting on its own behalf, as opposed to brokering transactions for its clients, it must properly denote to the exchange that it is doing so. These kinds of transactions are also known as "principal trades".

Related Definitions

Broker-Dealer

A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction.
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Principal

1. The amount borrowed or the amount still owed on a loan, separate from interest. 2. The original amount invested, separate from earnings.3. The face value of a bond.4. The owner of a ...
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