10 Effective Approaches to Risk Management For Broker


1. Know capacity of your client well- this is the first principle of risk management.

All dead clients from your terminal is a negative publicity whether it is their mistake only.


2. Do not buy stocks or commodity from total fund at once. If one want to buy stocks worth 1lac then suggest him buy 20,000 in first dip,then30000 & finally 50000in last dip. No one would get trapped in this way.


3. Do not try to increase your brokerage at once. This will make you give unlimited leverage or margin to clients. If sub broker is having lot of exposure then 3days down fall in market might destroy him.


4. Keep calling your clients daily before market open & after market close.Tell them their debit /credit regularly.

If he is seeing 5days loss in one evening then it may be shocking .


5. some time sub brokers back office holding report updates third day.

So debit in report may not be including last 2days debit. 


6. Don’t let any client indulge in Stcok futures from beginning.

Start with equity,then nifty option,nifty future ,stock option ,thenstock future.


7. Promote every client to put stop loss since morning only.You can’t keep watching movement of all the stocks.


8. All sub broker call clients for debit generally, You learn to call for credit as well. There is a big problem of inactive clients. If fund of some clients is useless there .call them to have very safe small but regular trade. This is the method to cultivate big clients.Small clients turn here in big volume traders.


9. Keep each client’s mobile  number and back office number on your desk.So that you can talk in urgency.If ther is some problem in your system & net connection,you can buy/sell from HO.

You can call to open client limit fast to place trade at right time.


10. You can give some regular sitting clients’ numbers to the client who is trading over phone. If you are engage on some phone then also you will get the message.

Some novice trader may be time killers so any other client may entertain him with answers to very basic questions.

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