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General TradingR
Riskless Principal
A broker-dealer that, after receiving a customer order, immediately executes an identical offsetting trade in the market, earning a markup or commission without taking on directional market risk.
Example
“A riskless principal broker receives a client's order to buy 10,000 shares of META, immediately buys them on the open market at $300, and sells to the client at $300.05, earning the $0.05 markup with zero directional exposure.”