A broker-dealer is a financial intermediary whose activities include acting as both broker and dealer in financial markets.
Broker-Dealer
Related Terms
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The bid/ask spread is the difference between the bid and ask price. The “ask” price is also known as the “offer” price. It’s the difference between the buyer’s and seller’s prices. The “bid “represents demand and the “ask” represents supply for an asset. In other words, it’s what the buyer is willing to pay for […]
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Liquidity describes the extent to which an asset can be bought and sold quickly, and at stable prices, and converted to cash. Liquidity refers to how quickly and at what cost one can sell an asset,...
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Commodity Futures Trading Commission (CFTC) is a US-based agency responsible for regulating the derivatives markets, which includes options, swaps, and futures contracts. CFTC plays an important...
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A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]
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A futures commission merchant (FCM) is a company or individual that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders. The FCM is also responsible for collecting margins from customers and ensuring delivery […]