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Give Up


In finance, “Give Up” is a term used to describe a situation where a broker executes an order for a security on behalf of another broker. Usually, this happens if the second broker cannot execute the order themselves due to certain restrictions or limitations. The broker that executes the trade then ‘gives up’ the commission to the broker who originally received the order.


The phonetic spelling of the phrase “Give Up” is: /ɡɪv ʌp/

Key Takeaways

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  1. Takeaway 1
  2. Takeaway 2
  3. Takeaway 3



The business/finance term “Give Up” is significant because it facilitates the smooth and efficient functioning of trading activities in financial markets. This term refers to a procedure where a broker who executed a trade forges the credit and the commission to another broker. Routinely used in securities transactions, it allows brokers to expand their trading capacities and client base without the need to increase their resources substantially. Furthermore, “Give Up” enables greater flexibility as it lets traders work with their chosen brokers while maintaining relationships with other brokers for their specialized services. Hence, this term is critical for fostering efficiency, convenience, and broader relationships in financial trading.


In the realm of finance and business, the term “Give Up” is essentially used to denote a procedure where a broker who performs a transaction on the stock market transfers, or “gives up,” their client’s trade execution to another broker. The purpose of this process is to allow the client to consolidate their trades with their preferred main broker-dealer for centralized processing and easier management, even if the trade was originally executed by another broker.The “Give up” system is particularly beneficial for clients who employ various brokerages or dealers to carry out their trading activities owing to their specific superior services or market penetrations in specific securities or markets, but wish to maintain a unified record and operational arrangement with a central broker. Moreover, the broker who gave up the transaction is compensated by the broker who is handling the client’s aggregate transactions and position. This approach enables customers to enjoy the specialty services of different brokers while maintaining an organized relationship with a primary broker.


1. Stock Market Trades: A broker executes a trade on behalf of another broker, often when the latter cannot handle the volume or does not have direct access to the trading system. The executing broker gives up, or attributes, the trade to the second broker for settlement with the client. The trade is also recorded in the name of the second broker.2. Futures Trading: Similar to the stock market example, in futures trading, a broker might execute a trade on behalf of another broker or brokerage firm. This is done when the original broker does not have a seat on the exchange or cannot cope with multiple orders, so they give up the trade to another broker who completes it. 3. In a business partnership: In a situation where two business partners have been struggling to turn their joint venture into a profitable business, one partner might decide to “give up” their share of the business, forfeiting their decision-making power and potential future profits, because they believe that the resources they’re putting into the venture (like time, money, or energy) are no longer worth the potential return.

Frequently Asked Questions(FAQ)

What does the term Give Up refer to in finance and business?

Give Up refers to a procedure in securities or commodities trading where an executing broker places a trade on behalf of a second broker because the second broker receives credit for the trade in the exchange records.

Is Give Up applicable to all kinds of trades?

The term is most commonly associated with futures trades, but it could theoretically be applied to any type of trade.

Why would a broker choose to Give Up a trade?

If a broker doesn’t have direct access to a trading facility, they may give up their trade to a broker that does. Alternatively, it could be a part of a contractual agreement between both brokers.

In a Give Up trade, who has the responsibility for the transaction?

Though the trade is executed by the first broker, the responsibility for the trade, including any risk and profit or loss, transfers to the second broker.

Does the first broker get compensated in a Give Up scenario?

Yes, the initial broker is often compensated by a portion of the commission or by a direct fee from the second broker who receives the credit.

What is the potential benefit of Give Up for clients?

Give Up trades can offer the client of the second broker easier consolidation and management of their trades if they are dealing with numerous trades across several exchanges.

How is a Give Up trade executed?

Give Up trades are typically executed through electronic trading systems. The broker giving up the trade will input the details and specify the broker to whom the trade will be given.

Related Finance Terms

  • Brokerage Commission
  • Executing Broker
  • Clearing Broker
  • Trading Agreement
  • Transaction Costs

Sources for More Information

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