Dealing Quotes

Dealing Quotes (DQ): Ordinary people often see it on television. Someone was on the phone with a busy and asking price. Within seconds the transaction is completed and the transaction data has been stored by the dealer (the dealer is someone who is placed by the broker with the task of channeling the mandate ofInvestors to transact). Dealers tell us the price prevailing at that time. In the event of a match the price of the transaction occurs. Evidence of the transaction is asound recording telephone conversations and quotes (record) all of which are stored by dealers.

It looks simple and easy, pick up the phone, talk and then finished. But if we lookfurther, this method has many disadvantages. The first weakness is the lack ofevidence of transactions that are only held by the dealer. Investors are quite dependent on the evidence in the form of quotes and transaction records arealso held by the dealer. And investors must recognize that the evidence of legitimate transactions is recognized only two things (because it is tied to theClient Agreement). Whereas if the investor had evidence of transactionsrecorded on his own initiative, the evidence is not recognized legally by the dealer and applicable law. In this case the investor's position became weaker.What if the evidence is lost or damaged transaction while the transaction is already underway and investors should make a profit?

Another disadvantage, because the transaction brokered by the dealers whoalso is a human then the human error factor is always there. Although dealersusually are trained people, it still has a factor of inaccuracy, negligent or evenemotional factors that can reduce professional work.