Dual Trading

When a broker simultaneously executes customer orders and places trades in his or her own account, or one in which he or she has a beneficial interest, on the same trading day. This is also known as acting as both an agent and a dealer at the same time. Dual trading is prevalent in the futures market.

Dual trading is a very controversial issue. Proponents say that when brokers are able to trade in their own accounts as well as those of their customers, they contribute to market performance and liquidity because personal broker trades make up a large portion of trading volume. On the other hand, opponents say that banning dual trading would not affect market liquidity, and would eliminate unlawful trading by removing any conflicts of interest.


Investment dictionary. . 2012.

Look at other dictionaries:

  • dual trading — The custom of a trader on the commodities ( commodity) market to deal for its own account and the investor s account at the same time. Bloomberg Financial Dictionary …   Financial and business terms

  • dual trading — Fin the practice of acting as agent for a broker’s firm and its customers …   The ultimate business dictionary

  • Dual-listed company — Dual listed companies should not be confused with cross listed companies, where the stock of one company is listed on more than one stock exchange. A dual listed company or DLC is a corporate structure in which two corporations function as a… …   Wikipedia

  • dual listed company — UK US noun [C] STOCK MARKET ► a company whose shares are traded on two stock markets: »The two sides are negotiating the terms of a dual listed company trading in London and the US …   Financial and business terms

  • Dual-sector model — This article is about the economic model. For the diagram representing atomic bonding, see Lewis structure. Sir W. Arthur Lewis Sir William Arthur Lewis, official Nobel Prize photo …   Wikipedia

  • dual capacity — The ability of a firm to act either as principal with the customers when trading or to act as agent on behalf of their customers. Dresdner Kleinwort Wasserstein financial glossary * * * dual capacity ˌdual caˈpacity noun [uncountable] FINANCE… …   Financial and business terms

  • Dual Currency Service — A forex trading service that allows an investor to speculate on exchange rate movement between two specific currencies through a fund or instrument. A dual currency service typically requires the investor to make directional speculations between… …   Investment dictionary

  • dual-capacity system — A system of trading on a stock exchange in which the functions of stockjobber and stockbroker are carried out by separate firms. In a single capacity system the two functions can be combined by firms known as market makers. Dual capacity existed… …   Accounting dictionary

  • dual-capacity system — A system of trading on a stock exchange in which the functions of stockjobber and stockbroker are carried out by separate firms. In a single capacity system the two functions can be combined by firms known as market makers Dual capacity existed… …   Big dictionary of business and management

  • dual-priced — duˈal priced adjective (stock exchange) Of trading, in which buyers and sellers deal at different prices • • • Main Entry: ↑dual …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.