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Give Up

Contents

Exploring the Concept of Give Up in Trading: A Comprehensive Guide

Dive into the world of give up in securities and commodities trading, uncovering its origins, mechanisms, and implications in modern financial markets. From understanding the parties involved to exploring real-life examples, this guide provides valuable insights into this once-common practice.

Unraveling the Dynamics of Give-Up Trades

Discover the intricacies of give-up trades, where executing brokers act on behalf of other brokers, relinquishing credit for the transaction. Explore the historical context of give up and its evolution with the advent of electronic trading, shedding light on prearranged agreements and compensation structures.

Differentiating Give Up from Give In

Delve into the terminology of give up and give in, elucidating the nuances between acceptance and execution of give-up trades. Gain a deeper understanding of these terms and their relevance in contemporary trading practices.

Parties Involved and Compensation Agreements

Explore the roles of the executing broker, client's broker, and counterparty broker in give-up trades, dissecting their responsibilities and interactions. Learn how compensation agreements are formulated to manage the provisions of give-up trades, ensuring fairness and transparency in the process.

An Illustrative Example