An investor's failure to avoid trading in the stocks that are part of a block and also within a specified amount of time. Bagging the street refers to a situation where an investor or a trader trades the securities shortly following initiation of the trade. Traders who frequently practice bagging the street will often have their margin requirements revoked by a brokerage. Block trades are usually for large quantity of stocks; therefore, and thus can have an impact on the price of shares underlying the block, especially if those securities are illiquid. Therefore, traders who practice bagging the street will attempt to gain an unfair disadvantage if the block trade is large enough to impact stock prices. once the block trade fully goes through and the market quickly absorbs the impacts, investors are free to resume their desired trading strategies.
1. An illegal practice in which an underwriting syndicate member withholds part of a new securities issue and later sells it at a higher price. 2. The illegal activity of buying a stock and selling it before paying for the purchase. Due to the unfair advantage both of these practices give to those able to exploit freeriding opportunities, freeriding is illegal and prohibited by the Securities & Exchange Commission and the National Association of Securities Dealers.
A slang term for the New Zealand dollar (NZD). It derives its name from New Zealand's national icon - a flightless bird called a kiwi - which is pictured on one side of the country's $1 coin. |||This is a popular term in currency trading because New Zealand's currency exchange rate is closely tied to the price/demand of the country's abundant agricultural and forestry products. It is not uncommon to hear a news report say the kiwi is up, or down, in the day's trading.
An informal investment term used to describe an investor who holds a position in a stock which decreases in value until it is worthless. Typically, the bag holder will hold the position for an extended period of time in which most of the investment is lost. Symbolically, the investor is left holding a bag full of worthless material, representing worthless stock. The bag holder, typically, will retain an investment even though there is convincing evidence that the value will continue to drop.There are several reasons this might happen, such as neglecting an underperforming portfolio, an investor not wanting to admit a mistake, or just plain hope that the stock will recover. Setting limits on losses and having a good exit strategy are ways to avoid this situation.
An electronic trading platform used for derivative, futures, and commodity contracts. Globex runs continuously, so it is not restricted by borders or time zones. Globex was introduced in 1992 by Reuters. The popularity of this platform has declined as exchanges such as the CBOT have moved towards different vehicles for matching and executing trades.
A stock that represents the most optimal investment choice for a specific sector or industry due to its high quality compared to its competitors. This slang is derived from dog shows, where the highest quality dog for each breed wins an award and is given the "best of breed" title. Because most investors are faced with the problem of limited capital for investment purposes, it is important that their capital only be allocated to the best investments. Therefore, it is important to identify "best of breed" stocks. Some criteria for determining whether a stock is the "best of breed" is by looking at its revenue growth, market share and corporate governance compared to its competition.
The mid-point between the highest high and lowest low of a particular security. The kijun line, also called kijun-sen, is the base line used specifically in ichimoku kinko hyo (or ichimoku cloud) candlestick charts. It is one of two moving average lines displayed in the chart, and is a 26-period moving average. (The other line, tenkan-sen, is a nine-period moving average.) |||When reading ichimoku kinko hyo, investors should note that the kijun line lags behind the tenkan-sen, and trails price less sensitively because it covers a longer period of time. When tenkan-sen crosses and moves above the kijun line, this is generally considered a bullish signal.
A procedure in securities or commodities trading where the executing broker places a trade on behalf of another broker as if he/she actually executed the trade. This is usually done because a broker is too busy to place a trade for a client and asks another broker to place the trade for him/her. On the record books, the trade will not show the executing broker's information, but the broker to whom the client belongs. Thus, the broker of the client and the broker on the other side of the trade will receive the commission, while the executing trader will get nothing. This is a grey area of law governing reimbursement of brokers for services (e.g. research). Pay close attention, here's how it works. Broker X gets a buy order from a client but is too busy to place the trade, so he asks Floor Broker Y, who isn't as busy, to place the order for him/her. Broker Y then buys the stock from Broker Z on behalf of Broker X's client. However, although Floor Broker Y places the trade, he must "give up" the transaction and record it as if Broker X placed the trade since the client belongs to him/her. Thus, the transaction is recorded as if X & Z made the trade, even though Floor Broker Y executed the trade.