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Bucketing or to bucket trades

• Refers to several illegal activities. Most common is the holding of customer orders by a broker who does not report an immediate execution to the client. In this case the broker would try to take advantage of a known buy (or sell) and do an intermediate trade for himself. For example, a customer gives a market order to buy and the broker executes an immediate transaction. However, the market advances and then the broker sells the instrument at which time he fills the customer order. The client then missed the benefit of the lower price. Sometimes, the term is used for the action of inappropriately using a client's funds for unauthorized trading.

 
 

Follow this link for all the terms related to trade.

 
 Embedded terms in definition
 Broker
Buy
Execution
Market order
Market
Order
Take
Time
Trade
Trading
 
 Related Terms
 Basket trades
Bucket shop
Flat trades
Information less trades
Information motivated trades
Program trades
Volatility trades
When issued trades

<< Bucket shop Buckets >>

Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

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