Jobber

Defining the Jobber in Trading

In the context of trading, a Jobber, also formally known as a 'stock jobber,' refers to a trader who buys and sells financial instruments, such as stocks, with an aim to make a profit from the bid-offer spread. This means, the Jobber buys at a lower price (bid) and sells at a higher price (offer), the difference being their profit.

The Jobber's Role

Jobbers play a fundamental role in maintaining liquidity in the stock markets. By constantly buying and selling, they constantly create opportunities for buyers and sellers to engage in transactions. This continuous wheel of trade keeps the financial markets active. In this way, Jobbers can be seen as market makers.

Jobber vs Broker

Though sounding similar, a Jobber is not the same as a broker. They do not handle transactions on behalf of third parties. Their transactions are strictly for their own gain. Brokers, on the other hand, are intermediaries between buyers and sellers and make their income from commissions on client transactions.

Jobbing as Trading Strategy

Jobbing, the act executed by a Jobber, is a trading strategy frequently used in equity markets. It's most effective in high-volume, high-liquidity situations. The key to successful jobbing lies in the speed of transactions - the faster a Jobber can buy and sell, while accurately predicting price movements, the higher the potential for profit.