Bucketing
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illegal practice in which a broker, hoping to profit from an offsetting transaction at a later time, executes a customer’s order for the broker’s own account instead of releasing the order to the market or open outcry system.
See also bucket shop.
See also bucket shop.
| Bucket Shop, Buck | |
| Budget Deficit, Budget Surplus |
Investopedia Financial Dictionary:
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Bucketing
A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which engages in unscrupulous activities, such as bucketing, is often referred to as a bucket shop.
Investopedia Says:
If the eventual price that the order is executed at is higher than the price available when the order was submitted, the customer simply pays the higher price. On the other hand, if the execution price is lower than the price available when the order was submitted, the customer pays the higher price and the brokerage firm pockets the difference
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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