Posted in Finance, Accounting and Economics Terms, Total Reads: 501
Definition: Contra Broker
The broker who takes up opposing position in the side of a transaction is known as Contra Broker. In other words the broker takes up sell position in the buy order or inversely the broker takes up buy side in a sell order if the broker is Contra Broker.
These broker are essentially opposite to the broker initiating the transaction.
They act as opposite to any delay or obstacle in the process of completion of the order.
In most cases the contra broker will work to make the transactions smooth for their clients. Moreover they will always work towards the advantage of their client while the originator broker works towards the advantage of the investor.