Desk Trader

  

Categories: Trading, Banking

A trader who buys and sells desks. Wood for metal. Steel for plastic.

Ok, no no no—not what this is. A desk trader is actually a semi-proprietary trader who shockingly sits at a desk...and trades securities and other financial products on the behalf of investor clients. Desk traders work for brokerage houses, and must be registered with the Securities & Exchange Commission or other relevant regulatory body.

See: Proprietary Trader.

Related or Semi-related Video

Finance: What is Principal Trade?0 Views

00:00

Finance Allah Shmoop What is ah principal trade All right

00:07

People think the broker as money manager or invest or

00:12

for their own account rather than just commission taker That

00:16

is a principle trade happens when the principal in the

00:19

trade by cell shorts leverage longs and well any other

00:23

kind of investment exposures such that they make or lose

00:27

money for their own account using their own money I'ii

00:31

they are the principles in that trade Well the extra

00:35

spiff to the brokerage in making trading happen on their

00:38

own is that the scum sucking leeches they normally be

00:41

paying commissions to on those trades are in fact yes

00:45

themselves I either just trading for themselves and yeah thumbs

00:49

up there pal Well when making this kind of trade

00:51

brokers must report it I make it known to their

00:54

trading partners or whoever they're trading with and then file

00:57

paperwork behind it The thinking being that a brokerage should

01:00

presumably have a lot more knowledge than the average schmo

01:03

Yeah this guy when they're making these trades and they

01:06

have to be highly disc close it tive that they're

01:09

actually buying or selling a given stock for their own

01:12

account when maybe they've got some stockbroker who's doing the

01:16

opposite for some unwitting client The SEC wants to know

01:19

about it If there's any you no funny business going 00:01:22.14 --> [endTime] on they're there to protect the little guy

Up Next

Finance: What is a Floor Broker v. Floor Trader
13 Views

What is a Floor Broker vs. Floor Trader? Both floor brokers and floor traders execute trades on the exchange floor, the difference is who they exec...

Find other enlightening terms in Shmoop Finance Genius Bar(f)