Is it common to use multiple brokers for risk reduction?
Is it common to use multiple brokers for risk reduction?
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External question — Quantitative Finance Stack Exchange
Author: G__
Original post: https://quant.stackexchange.com/questions/1088
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Would it be considered appropriate risk-management or overkill to utilize multiple brokers to manage a given trading strategy?
A couple specifics:
I'm interested in what a reasonably-sized hedge fund might typically do, not an individual day trader.
Let's assume major equities and that either broker could easily handle the whole strategy alone; the point is avoiding the risk of one broker being unavailable or unable to execute a trade.
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Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: G__ Source score (net votes, not local likes): 7 Original post: https://quant.stackexchange.com/questions/1088 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Would it be considered appropriate risk-management or overkill to utilize multiple brokers to manage a given trading strategy? A couple specifics: I'm interested in what a reasonably-sized hedge fund might typically do, not an individual day trader. Let's assume major equities and that either broker could easily handle the whole strategy alone; the point is avoiding the risk of one broker being unavailable or unable to execute a trade.
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