Series 99: 1.2.2.5 Prime Brokerage Accounts

Taken from our Series 99 Top-off Online Guide

1.2.2.5  Prime Brokerage Accounts

Because of their large size, hedge funds and other institutional investors often employ a number of brokers to execute their trades. To coordinate their trading, they sometimes open prime broker accounts. A prime broker does not engage in trading activity. Trading is done instead by executing brokers. The prime brokerage is the place where the customer’s trades are cleared and settled. Th

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