There are a couple of places where the book mentions broker represent the order for the trader, brokers act as traders agents to find counterparties for the traders…
I think these are the job of the dealers, right? If so, can we assume when brokers do these activities, we consider them as dealers?
Thanks!
Wrong.
Brokers are your friends.
Dealers are your enemies.
Thanks for your response!
Can you give me a real life example who is a broker? I know the dealers are the market makers like BAC’s,GS’s market making trading desk. Will the brokers be those bank’ sother desks or other firms? I am just trying to find a way to remember this better.
Got it. Thanks for the clarification, Magician!
My pleasure!