Talk:Principal trade

Current entry is inaccurate.

In a principal trade a broker transacts directly with the customer. Customer buys <--> broker sells; or, customer sells <--> broker buys. In an agency transaction, a broker is a party to the transaction.

In an agency trade a broker transacts on behalf of a customer. The broker but is not a party to the transaction. In an agency transaction, a broker is an intermediary between a customer and a third party.

Usage example: Principal trades involve the brokerage firm and a client (principal/client trade), while agency trades involve two clients of the brokerage firm (client/client trade). --Krkeane (talk) 17:18, 14 February 2018 (UTC)