Floor broker

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A floor broker (also called a pit broker) is a member of an exchange who as an individual purchases or sells commodity futures, options or listed securities on a contract market or securities exchange for any other person from the trading floor (or the pits) of an exchange.[1]

Futures

A floor broker for U.S. futures trading must register with the National Futures Association. However, in U.S. futures a registered floor broker need not also register as a floor trader in order to engage in activity as a floor trader.

Floor brokers receive orders by paper order, by hand signals, over a computer or by phone.

Securities

References

  1. www.nfa.futures.org. National Futures Association, FB Registration.