Deck

What Is a Deck?

A deck, otherwise called a broker's deck, is the number of open orders that a broker is working with at any one time. A broker with a large deck must efficiently track down buyers and sellers for securities, or risk the cancellation of orders. More experienced brokers can operate with larger open positions assuming that they are certain in their ability to track down counter-parties.

How a Deck Works

A floor trader works with orders, alluded to by and large as a deck, received from clients mentioning certain securities be bought or sold. While they work for one of the different stock exchanges, for example, the New York Stock Exchange (NYSE), floor traders work just on the accounts they have secured for themselves.

Brokers with a large deck might view holding too many orders as inefficient or testing. As a floor trader (FT), the broker attempts to fill both buy and sell orders as they are received. This requires a high level of connection with different gatherings that are keen on making the trade as well as critical research dedicated to each order that is at present held in the deck.

A larger deck means that the broker is dealing with a higher number of orders. This higher level of demand might make it challenging to secure the best arrangements for each open order available to the broker and may make tracking transactions less efficient.

Illustration of Orders in a Broker's Deck

For instance, in the event that a floor trader has an open order for Company An and Company B, it may not be imaginable to all the while check out at satisfaction options for the two solicitations. All things being equal, the trader might need to switch to and fro between the solicitations or spotlight on one until completion and afterward move to the next. While working on the order for Company A, a favorable opportunity might open for Company B. Contingent upon where the trader is with the Company An order, he will most likely be unable to capitalize on the opportunity for the Company B order.

Another model would be on the off chance that the broker has a buy order in company A with a limit of 82.50 for a customer and a sell order for company A stirs things up around town's deck with a limit of 82.48, the broker will cross the orders mid-market at 82.50 when the quote is inline. By crossing an order, transaction costs are lower for the broker relative to working the orders on the screen (exchange).

Exchange Shutdowns

In view of the availability of certain securities on different exchanges and the developing dependency on technology in the trading arena, a broker with a large deck might experience more botched opportunities in the event a technical issue closes down an exchange.

For instance, on July 8, 2015, the NYSE stopped operations for roughly three hours. During that time, different exchanges, like the Nasdaq, kept on trading NYSE-recorded stocks as the technical issues didn't limit the function of different exchanges. This could cause critical price changes that could influence a trader's ability to complete an order whenever service was reestablished.

Highlights

• While they work for one of the different stock exchanges, for example, the NYSE, floor traders work just on the accounts they have secured for themselves.
• A floor trader works with orders, alluded to on the whole as a deck, received from clients mentioning certain securities be bought or sold.
• A deck is the number of open orders that a broker is working with at any one time.
• A larger deck means that the broker is dealing with a higher number of orders.
• This higher level of demand might make it hard to secure the best arrangements for each open order available to the broker and may make tracking transactions less efficient.