what is give up 
give up is a procedure in securities or commodities trading where an executing broker places a trade on behalf of another broker it is called a give up because the broker executing the trade gives up credit for the transaction on the record books a give up usually occurs because a broker cannot place a trade for a client based on other workplace obligations a give up may also happen because the original broker is working on behalf of an interdealer broker or prime broker understanding give up tradesgive up is no longer a common trading practice in the financial markets give up was more common before the development of electronic trading in the floor trading era a broker might not be able to make it to the floor and would have another broker place the trade as a sort of proxy overall the act of performing a trade in the name of another broker is generally part of a prearranged give up agreement prearranged agreements typically include provisions for the give up trade procedures as well as compensation give up trades are not standard practice so payment is not clearly defined without a prearranged agreement give up vs give inacceptance of a give up trade is sometimes called a give in after a give up trade is actually executed it can then be called a give in however the use of the term give in is much less common parties involved in the tradethere are three main parties involved in a give up trade these parties include the executing broker party a the client s broker party b and the broker taking the opposite side of the trade party c a standard trade only involves two parties the buying broker and the selling broker a give up also requires one other person who executes the trade party a in cases where both the original buying and selling brokers are otherwise obligated a fourth party can become involved in a give up trade if the buying broker and the selling broker both ask separate traders to act on their behalf then this scenario would result in a give up on the selling side and the buying side a request is made of party a to place the trade on behalf of party b to ensure the timely execution of a trade on the record books also known as a trade log a give up trade shows the information for the client s broker party b party a executes the transaction on behalf of party b and is not formally noted in the trade record compensation agreements are typically created to manage the provisions of give up trades the executing broker party a may or may not receive the standard trade spread executing brokers are often paid by the non floor brokers either on retainer or with a per trade commission this comprehensive payment to the executing broker may or may not be part of the commission that broker b charges his client example of a give up tradebroker b gets a buy order from a client to buy 100 shares of xyz on the new york stock exchange nyse broker b works upstairs at a large brokerage firm and needs to get the order down to the floor of the nyse to execute the trade in a timely fashion broker b asks floor broker a to place the order floor broker a then buys the stock on behalf of the client of broker b although floor broker a places the trade he must give up the transaction and record it as if broker b made the trade the transaction is recorded as if broker b made the trade even though floor broker a executed the trade 