What is Jobbing in Stock Market?
Jobbing is basically a process of buying and selling stocks or securities with a very minimal target and Higher quantity. those who follow this work are called jobbers.
Simply put, Jobbing in the stock market is a very short-term stock trading for small profits.
jobbers buy shares that they keep for very little time, like minutes or sometimes seconds. They use more capital and move out of trade with a small percent change.
Jobbing is a “Low Risk- High Return” mode of Trading with zero position at the end of the day.
Buying or Selling stock and then instantly buying it back or selling it back for a quick profit.
It is also known as high-frequency trading. Enter and exit the market quickly, multiple times throughout the trading day.
However, nowadays algorithm-based trading has created buying and selling of stocks very easy as we have many brokers like Zerodha, ICIC Securities, etc., who have enabled digital buying and selling of shares through their Demat. Therefore, most jobbers have lost their job in the stock market.
Jobber Role in Stock Market
- Jobbers purchase shares in stock exchange companies directly and sells them either to other jobbers or to stock exchange agents. They are not permitted to sell their stock directly to customers.
- They stand on behalf of stockbrokers and perform similar buying and selling operations.
- Jobbers help maintains cash flow through frequent buying and selling of stocks.
- When buying or selling stocks, they use various signs and symbols, which must be understood by other parties who buy or sell to jobbers. if misunderstood, it can result in loss.
Jobber vs Broker
- A jobber is an independent dealer who buys or sells stocks for himself. whereas a broker is a middleman between a jobber and clients.
- A jobber is only involved in trading with brokers. A broker trades with a jobber on behalf of their investors.
- A Broker act as a link between jobbers and investors, i.e. buying and selling stocks on behalf of their investors.
- A jobber is a special mercantile agent providing two-way quotes. whereas a broker is a general mercantile agent and trades on behalf of their clients.