The investor informs the broker firm and their custodian (a financial institution – usually a bank – which looks after their assets for safekeeping) of the security they would like to buy, and at what price – either the market … See more

The investor’s order is received by the front office sales traders at the brokerage firm. From this point, the order is fed down to the risk management experts in the middle office of the organisation. The sales traders then ‘execu… See more

The risk management team will conduct a number of checks and calculations to see whether the levels of risk involved with the client’s order mean it’s still safe to accept and proceed to the next stages. Amongst other thing… See more

When an order is accepted and validated by the risk management team, the broker firm sends it to the Stock Exchange… Now, let’s pause for a breather and consider what’s going on the sell-side of things, i.e. the guys wi… See more