Privilege Dealer

DEFINITION of 'Privilege Dealer '

An individual or a securities firm that is registered as a market maker or specialist in listed options. A privilege dealer trades futures or options with their gains and losses being subject to a complex set of rules.


Also known as an options dealer.

BREAKING DOWN 'Privilege Dealer '

An options dealer can also be a dealer in regular securities like stocks, bonds, notes, mortgages, bills of lading and bills of exchange. They are subject to the same treatment as a securities dealer with respect to transactions.

RELATED TERMS
  1. Dealer Incentive

    A corporate sales strategy in which the price a dealer has to ...
  2. Dealer Market

    A financial market mechanism wherein multiple dealers post prices ...
  3. Markup

    The difference between an investment's lowest current offering ...
  4. Purchase and Resale Agreements ...

    An arrangement between the Bank of Canada and dealers whereby ...
  5. Dealer

    A person or firm in the business of buying and selling securities ...
  6. Bid Wanted In Competition - BWIC

    A situation where an institutional investor submits its bond ...
Related Articles
  1. Investing

    What's a Dealer Market?

    In a dealer market, market participants buy and sell through dealers who are designated as market makers.
  2. Professionals

    What Does a Dealer Do?

    Dealers possess certain qualities that distinguish them from brokers and traders.
  3. Investing

    A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  4. Personal Finance

    Watch the Fees on Your New Car - They Can Add Up!

    If you’re in the market for a new car, the asking price isn’t the only number you should be negotiating. The fees can cost you if you aren’t careful.
  5. Financial Advisor

    What Is A “Broker-Dealer” And Why Should You Care?

    For many investors, the financial services industry is a strange and mysterious place filled with a language all in its own. Terms like “alpha,” “beta” and “Sharpe-Ratio” ...
  6. Markets

    Customize Your Trading With Flex Options

    These unique instruments take options trading to a whole new level.
  7. Markets

    What's an Over-The-Counter Market?

    The over-the-counter market is a decentralized market in which unlisted securities trade.
  8. Investing

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  9. Trading

    Introduction - Day Trading and Options

    Options have not been a tradition part of day-trading strategy, but this is quickly changing.
  10. Investing

    Types of Options

    There are many different types of options. In addition to general put options and call option, we will discuss 13 different types of options. Some of these option types are better suited to day ...
RELATED FAQS
  1. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  2. What's the difference between a regular option and an exotic option?

    Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >>
  3. How does the International Chamber of Commerce define the term 'Free on Board' (FOB)?

    Find out more about the International Chamber of Commerce, Incoterms rules and how the International Chamber of Commerce ... Read Answer >>
  4. Does the seller (the writer) of an option determine the details of the option contract?

    The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between ... Read Answer >>
  5. How can I find out which stocks also trade as options?

    The trading of options has become increasingly popular among retail investors as they become aware of the many different ... Read Answer >>
  6. Do options make more sense during bull or bear markets?

    Understand how options may be used in both bullish and bearish markets, and learn the basics of options pricing and certain ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center