Runner

AAA

DEFINITION of 'Runner'

A broker employee who delivers a market order to the broker's floor trader. After a customer places an order to the broker's order taker, the runner will pass the instructions to the pit trader and wait for confirmation. Once the trade is executed, the runner will return to the order taker, confirming the order has been filled.

INVESTOPEDIA EXPLAINS 'Runner'

Runners are an important link between the customer and the floor trader. They are responsible for passing on the a customer's order to the broker in a timely fashion. The runner communicates all terms associated with a market order and whether the order is of a specific type. As exchanges have slowly shifted from a floor-based trading environment to electronic platforms, the need for runners has decreased as orders are processed electronically.

RELATED TERMS
  1. Broker

    1. An individual or firm that charges a fee or commission for ...
  2. Trader

    An individual who engages in the transfer of financial assets ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Floor Trader - FT

    An exchange member who executes transactions from the floor of ...
  5. Market Order

    An order that an investor makes through a broker or brokerage ...
  6. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  3. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

  4. The Stock Market: A Look Back
    Economics

    The Stock Market: A Look Back

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center