chandsingh

AGENCY TRADE= broker/dealer does not commit their own capital to the trade, they are just an "agent" trying to match a buyer & seller

PRINCIPAL TRADE= you press a button, give all of your order to the broker, they commit their own capital in order to take it off your hands, now they have to go get rid of it but the broker is bearing the risk, not you cuz you are out of the picture now.

Now the client brokerage policies with these I'm not sure about...