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General TradingI
Internalization
The process by which a broker or dealer fills a client's order from its own inventory rather than routing it to an exchange or external market. It can offer faster execution but may raise conflict-of-interest concerns.
Example
“For example, a large retail broker might internalize a client's order to buy 100 shares of TSLA by selling from its own inventory at the quoted price, avoiding the need to route to the NYSE.”